Pakistan’s foreign currency deposits drop 1.58 per cent in October

ISLAMABAD: Foreign currency deposits in Pakistan are down by 1.58 per cent or $105 million to $6.58 billion by October compared to the previous month, according to the latest data from the State Bank of Pakistan (SBP).

However, when compared to the same time last year, the deposits actually increased by $274 million, a 4.35 per cent rise.

The report also showed that deposits from residents amounted to $5.72 billion in October, which is 2.02 per cent lower than the $5.84 billion recorded in the previous month.

But compared to October last year, this figure went up by 3.55 per cent from $5.52 billion.

These foreign currency deposits are crucial for covering large fiscal and external deficits. In October, $830 million was used for financing exports, while $1.49 billion went towards import financing.

Additionally, $1.05 billion was held with the SBP, while $77 million was placed in Pakistani banks, and $325 million was kept outside the country.

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