Pakistan’s foreign exchange reserves dip by $76mn amid debt repayments

ISLAMABAD: Pakistan’s foreign exchange reserves held by the State Bank of Pakistan (SBP) have dropped by $76 million on a weekly basis, bringing the total to $11.37 billion as of January 24. The decrease is attributed to ongoing external debt repayments, according to data released on Thursday.

The country’s total liquid foreign reserves stand at $16.05 billion, with commercial banks holding $4.68 billion in net reserves. This recent decline follows a larger drop of $276 million in SBP reserves the previous week, highlighting the continued strain on Pakistan’s foreign currency reserves due to debt obligations.

The SBP emphasized that the decline in reserves is a direct result of these external debt payments, which remain a significant challenge to the country’s economic stability.