The foreign exchange reserves held by the central bank fell by 2.7% on a week-on-week basis to $4.19 billion, according to data released by the State Bank of Pakistan (SBP) on Thursday.
On May 19, 2023, the SBP’s foreign currency reserves stood at $4,193 million, down by $119 million as compared to $4,311.9 million on May 12.
The central bank attributed the decrease in reserves to external debt repayments.
Overall, the liquid foreign currency reserves held by the country, including the net reserves held by banks other than the SBP, stood at $9,731.1 million. The net reserves held by banks amounted to $5,538.1 million.
Ismail Iqbal Securities Head of Research Fahad Rauf has said that any significant improvement in Pakistan’s foreign currency reserves depends on the revival of International Monetary Fund’s (IMF) loan programme and the inflow of fresh financing from other multilateral and bilateral creditors.
“They (FX reserves) are projected to rise to around $7-8 billion by the end of current fiscal year on June 30, 2023,” he said.
Published in The Logical Baat, May 26th, 2023.