SBP’s reserves decline by $216.7 million amidst debt repayments

WEB DESK: In the week concluding on November 17, 2023, the State Bank of Pakistan (SBP) observed a decline in its foreign exchange reserves by $216.7 million, marking a 2.93 per cent decrease compared to the previous week.

The SBP, in its official statement on Thursday, attributed this reduction to debt repayments.

Concurrently, the overall reserves of the country experienced a decrease of $233.2 million, reflecting a 1.86 per cent decline week over week, reaching a total of $12.3 billion.

Commercial banks also reported a decrease in their reserves, with a reduction of $16.5 million, representing a 0.32 per cent decline to $5.12 billion.

In recent developments, Pakistan has received preliminary approval from the International Monetary Fund (IMF) for the disbursement of the upcoming tranche under the existing $3 billion loan programme.

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Subject to approval by the IMF’s Executive Board, this agreement will provide Pakistan with access to SDR 528 million, equivalent to approximately $700 million.

It is noteworthy that towards the conclusion of FY23, Pakistan averted a sovereign debt default with the support of the IMF, securing a $3 billion standby arrangement (SBA).

The initial disbursement of $1.2 billion from the IMF, coupled with $3 billion in bilateral inflows from Arab countries, significantly bolstered the dwindling foreign reserves of the country.

As a result, in the ongoing fiscal year, the total liquid foreign reserves have witnessed a notable increase of $3.14 billion, representing a growth of 34.3 per cent.

Simultaneously, the current calendar year has seen a rise of $1.46 billion, reflecting a substantial 13.44 per cent increase.