SBP’s reserves plunge 3.07pc to $9.33bn

The foreign exchange reserves held by the State Bank of Pakistan continued to spiral downwards as they decreased 3.07 per cent on a weekly basis, according to data released on Monday.

The drop in reserves raises a concern about Pakistan’s ability to meet its financing requirements as the reserves have fallen below the $9.5-billion mark.

On September 14, the foreign currency reserves held by the central bank were recorded at $9,328.8 million, down $295.6 million compared with $9,624.4 million in the previous week.

The decrease was attributed to external debt servicing and other official payments.

Overall, liquid foreign reserves held by the country, including net reserves held by banks other than the SBP, stood at $15,790.1 million. Net reserves held by banks amounted to $6,461.3 million.

A month ago, China agreed to immediately give a loan of $2 billion to Pakistan, a move meant to arrest the slide in foreign currency reserves and provide much-needed breathing space for the new government.