A Major drop in Pakistan Forex Reserves down from $14.39M to $6.7M: SBP

(Infosette News ) KARACHI: The Pakistan Forex Reserves decreased by 0.2% week over week, according to figures issued by the State Bank of Pakistan (SBP).

The central bank’s foreign reserves, according to SBP data, were $6,700 million, down $14.9 million from $6,714.9 million on December 2. SBP-held reserves are at their lowest point since January 2019.

The fall in reserves was unjustified according to the central bank.

In the meantime, the nation’s liquid foreign currency holdings, which also include the net reserves held by banks other than the SBP, were valued at $12,570.2 million. Banks held a total of $5,870.2 million in net reserves.

Jameel Ahmad, the governor of the SBP, claimed in a podcast on December 8 that all debt repayments were on schedule and that the country’s foreign exchange reserves will likely rise in the second half of the current fiscal year.

A total of $33 billion, comprising a $10 billion Current Account Deficit (CAD) and $23 billion in loan repayments, were to be paid back to external stakeholders for the fiscal year 2023, according to Governor SBP.

Out of the $23 billion in external debt that is due, Pakistan has already paid back more than $6 billion, and with the help of the appropriate nations, a $4 billion bilateral loan has been extended.

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