Reserves down to $7.85b

SBP attributed dip in Pakistan’s forex reserves to debt repayments

KARACHI:

The State Bank of Pakistan (SBP) reported a 1.02% decrease in foreign exchange reserves on a week-on-week basis, revealing a total of $7.85 billion as of August 25, 2023. The data, unveiled by the central bank on Thursday, indicates a reduction of $81.2 million compared to the previous week’s $7.93 billion.

The SBP attributed the dip in Pakistan’s forex reserves to debt repayments. The overall liquid foreign currency reserves, inclusive of reserves held by commercial banks, stood at $13.17 billion, with commercial banks accounting for $5.32 billion of the total.

July 2023 witnessed a noteworthy improvement in reserves due to financial assistance extended by the International Monetary Fund (IMF) and supportive nations. A fresh $3 billion loan program from the IMF, spanning nine months, contributed approximately $1.2 billion to Pakistan. Additionally, generous deposits of $3 billion from Saudi Arabia and the UAE boosted the country’s economic prospects.

Published in The Express Tribune, September 1^st, 2023.

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