State Bank reserves fall $88m to $17.6 billion
According to the first estimates, real GDP grew by 2.1% year on year in the first quarter of FY24, compared to 1% in the same quarter last year. PHOTO: FILE
The foreign exchange reserves held by the central bank fell 0.5% on a weekly basis, according to data released by the State Bank of Pakistan (SBP) on Thursday.
On January 7, the foreign currency reserves held by the SBP were recorded at $17,597.9 million, down $88 million compared with $17,686 million on December 31.
The central bank gave no reason behind the decrease in reserves.
Overall liquid foreign currency reserves held by the country, including net reserves held by banks other than the SBP, stood at $23,901.4 million. Net reserves held by banks amounted to $6,303.5 million.
Earlier in the week ended August 27, 2021 the foreign exchange reserves held by the central bank soared to an all-time high of $20.15 billion after Pakistan received general allocation of Special Drawing Rights (SDRs) worth $2,751.8 million from the International Monetary Fund (IMF) on August 24.
On March 30, 2021, Pakistan borrowed $2.5 billion through Eurobonds by offering lucrative interest rates to lenders aimed at building the foreign exchange reserves.
It 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.
The reserves also jumped on account of $2.5 billion in inflows from China. In 2020, the SBP successfully made foreign debt repayment of over $1 billion on the maturity of Sukuk.
In December 2019, the foreign exchange reserves surpassed the $10 billion mark owing to inflows from multilateral lenders including $1.3 billion from the Asian Development Bank (ADB).
Published in The Express Tribune, January 14th, 2022.
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