The foreign exchange reserves held by the State Bank of Pakistan (SBP) have decreased by 1.5% on a week-on-week basis, reaching $7.93 billion, according to data released by the central bank on Thursday.
By the end of the week on August 18, 2023, the central bank’s foreign currency reserves were recorded at $7,930.5 million, indicating a decrease of $125 million compared to the previous week’s $8,055.3 million.
The SBP cited debt repayments as the reason for the decrease in Pakistan’s forex reserves. Total liquid foreign currency reserves, including those held by commercial banks, reached $13,248.4 million. Among these, the commercial banks held reserves of $5,317.9 million.
The reserves improved significantly in July 2023 following financial assistance from the International Monetary Fund (IMF) and friendly nations. Pakistan secured approximately $1.2 billion from the IMF under a new $3 billion loan programme spanning nine months. Additionally, Saudi Arabia and the UAE contributed deposits of $3 billion.
Published in The Express Tribune, August 25th, 2023.
POST AUTHOR: Our Correspondent