Forex reserves decline to $8.04b

SBP attributes decrease to debt repayments

KARACHI:

Foreign exchange reserves held by the State Bank of Pakistan (SBP) have fallen by 1.35% on a week-on-week basis, reaching $8.043 billion, according to data released by the central bank on Thursday. By the end of the week on August 4, 2023, the central bank’s foreign currency reserves were recorded at $8.04 billion, indicating a decrease of $110.4 million compared to the previous week’s $8.1 billion.

The SBP attributed this decline in Pakistan’s forex reserves to debt repayments. Total liquid foreign currency reserves, including those held by commercial banks, totalled $13.3 billion. Among these reserves, commercial banks accounted for $5.2 billion. Notably, the country’s reserves experienced significant improvement in July following financial aid from the International Monetary Fund (IMF) and supportive countries.

Pakistan secured approximately $1.2 billion from the IMF through a new $3 billion loan programme spanning nine months. Additionally, Saudi Arabia and the United Arab Emirates (UAE) contributed deposits amounting to several billion dollars.