Pakistan’s foreign exchange reserves drop by $21 million

WEB DESK: The State Bank of Pakistan (SBP) disclosed that the country’s foreign exchange reserves declined by $21 million within a week, reaching $7.615 billion by September 28, according to data released on Thursday.

The country’s total liquid foreign reserves were reported at $13.03 billion, with commercial banks holding net foreign reserves of $5.415 billion.

The central bank did not provide specific reasons for this decline. In a statement, SBP noted, “During the week ended on 28-Sep-2023, SBP’s reserves decreased by US$ 21 million to US$ 7,615.4 million.” This follows a significant decrease of $59 million in the previous week.

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Earlier this year, Pakistan experienced a boost in its reserves when it received the first tranche of approximately $1.2 billion from the International Monetary Fund (IMF) after the approval of a new $3-billion stand-by arrangement.

Additionally, inflows were received from Saudi Arabia and the UAE. Despite these positive developments, the central bank’s reserves have been facing challenges due to debt repayments, increased import payments following eased restrictions, and a lack of fresh inflows.