SBP reserves fall $386m to $13.01b
Nearly 87% of foreign loans were for budget financing and building foreign exchange reserves, which meant that these had not been utilised for creating assets. PHOTO: FILE
The foreign exchange reserves held by the central bank fell 2.88% on a weekly basis, according to data released by the State Bank of Pakistan (SBP) on Thursday. On January 15, the foreign currency reserves held by the SBP were recorded at $13,013.8 million, down $386 million compared with $13,400 million in the previous week. According to the central bank, the fall came on the back of external debt repayments. Overall, liquid foreign currency reserves held by the country, including net reserves held by banks other than the SBP, stood at $20,120.3 million. Net reserves held by banks amounted to $7,106.5 million. Pakistan received the first loan tranche of $991.4 million from the IMF on July 9, 2019, which helped bolster the reserves. In late December 2019, the IMF released the second loan tranche of around $454 million.
Published in The Express Tribune, January 22nd, 2021.
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