SBP reserves drop by $63.3 million due to debt repayments

WEB DESK: The foreign exchange reserves held by the State Bank of Pakistan (SBP) decreased by $63.3 million, or 0.69 per cent, to $9.09 billion during the week ending on May 24, 2024, according to data released by the SBP on Thursday.

The central bank attributed this decline to external debt repayments.

In an official statement, the SBP confirmed the reduction in reserves, stating, “During the week ended on May 24, 2024, SBP reserves decreased by $63 million to $9.09 billion due to external debt repayments.”

The country’s total reserves also saw a decline, falling by $270 million, or 1.85 per cent, to $14.32 billion within the same period. This includes a significant drop in reserves held by commercial banks, which decreased by $206.7 million, or 3.81 per cent, to $5.22 billion.

Despite these recent decreases, the SBP-held reserves have shown a robust increase over the current fiscal year, rising by $4.63 billion, or 103.6 per cent. This notable growth is largely attributed to Pakistan securing a Stand-By Arrangement (SBA) of approximately $3 billion with the International Monetary Fund (IMF) by the end of June last year.

This arrangement has facilitated additional multilateral and bilateral funding for the country.

Additionally, the current calendar year has seen an increase in SBP reserves by $872.5 million, or 10.61 per cent, reflecting ongoing financial improvements despite recent fluctuations.

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