SBP’s reserves drop to $8.3b

KARACHI: The foreign exchange reserves held by the central bank continued to spiral downwards for the seventh successive week as they fell 1.12% on a weekly basis, according to data released on Thursday.

The continued drop in the reserves raises concern about Pakistan’s ability to meet its financing requirements as the reserves have dropped below the $8.5-billion level.

During the week, Pakistan formally requested the IMF to help address the country’s economic challenges. IMF Managing Director Christine Lagarde announced that she would send a mission to Pakistan for bailout negotiations amid emphasis on full disclosure of the debt Pakistan has acquired including from China. The rupee also faced a depreciation of about 7.5% against the US dollar in light of the decision.

On October 5, the foreign currency reserves held by the SBP were recorded at $8,307.8 million, down $101 million compared with $8,408.5 million in the previous week. The decrease was attributed to payments on account of external debt servicing.

Overall, liquid foreign reserves held by the country, including net reserves held by banks other than the SBP, stood at $14,852.3 million. Net reserves held by banks amounted to $6,544.3 million. 

Published in The Express Tribune, October 12^th, 2018.

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