In the latest report by the State Bank of Pakistan (SBP), the country’s foreign exchange reserves have decreased by $54 million within a week, as revealed in data published on Thursday.
As of January 26, the SBP’s foreign currency reserves stand at $8.216 billion, down from $8.270 billion recorded on January 19. The central bank clarified that the reduction is primarily attributed to external debt repayments, as stated in a brief release accompanying the report.
Taking a comprehensive view of liquid foreign currency reserves, including those held by banks other than the SBP, the total reserves in the country amount to $13.262 billion. This represents a $79 million decrease from the previous week.
Specifically, net reserves held by banks (excluding the SBP) dropped by $25 million during the week, reaching $5.046 billion.
Adding to the financial landscape, Pakistan has recently approached China requesting a one-year extension for the repayment of a $2 billion debt. The deadline for the $2 billion loan from China is slated for March 23, 2024. This development introduces additional complexities as Pakistan manages external financial commitments amidst fluctuations in foreign exchange reserves.
