The State Bank of Pakistan's (SBP) reserves have declined by $143 million, bringing the total to $11,710.5 million, data released on Thursday showed. The decrease was attributed to external debt repayments.
As of December 27, 2024, Pakistan's total liquid foreign reserves stood at $16,408.7 million. Data breakdown showed that reserves held by the SBP amounted to $11,710.5 million, while net reserves held by commercial banks were $4,698.2 million.
According to Arif Habib Limited (AHL), in the last monetary policy committee (MPC) meeting, when the SBP decided to reduce policy rate by 200 basis points (bps), bringing it down to 13%, it indicated that for FY25, Pakistan's total external debt obligations were estimated at $26.1 billion. It comprised $22.1 billion in principal repayments and $4 billion in interest.
An amount of $10.4 billion (including the rollover of $5.4 billion) has already been either repaid or rolled over. A significant part of the remaining debt is also expected to be rolled over, with around $5 billion projected to be repaid during the rest of FY25.
The SBP has planned further rollovers in the coming months, and about $5 billion will be repaid, said Maaz Azam of Optimus Capital Management.
The SBP's reserves are projected to exceed $13 billion by the end of FY25, an increase of around $900 million from the current level of $12.1 billion, according to AHL.
JS Global Deputy Research Head Waqas Ghani Kukaswadia told The Express Tribune that for FY25, the government was on track to fulfil its foreign debt obligations of around $26 billion.
It was expected to secure rollovers and refinancing of around $16-17 billion, leaving a net repayment of only $5.5 billion for this half, he added.
"Despite the recent dip in reserves to $11.7 billion, the government's target of taking the SBP's deposits to $13 billion by the end of June 2025 is conceivable in our view," he said.
Meanwhile, in the first session of 2025, the Pakistani rupee experienced a slight dip against the US dollar, depreciating by 0.03% in the inter-bank market.
By the close of trading, the rupee settled at 278.64, reflecting a loss of nine paisa against the dollar. On Tuesday, the currency had closed at 278.55, as reported by the SBP.
Exchange Companies Association of Pakistan Secretary General Zafar Paracha said that exchange companies handled a total volume of approximately $7 billion in calendar year 2024, contributing to Pakistan's progress and prosperity.
He also revealed that exchange companies provided $3.85 billion to the inter-bank market to strengthen Pakistan's foreign reserves. Moreover, the demand for $3.15 billion was catered to in the open market to support international travel, including Hajj and Umrah pilgrimages, payment of overseas university fees, family assistance, and medical treatments abroad.
On the other hand, gold prices in Pakistan rose on Thursday, mirroring an increase in international rates.
In the local market, the price of gold per tola reached Rs274,700, reflecting a single-day rise of Rs1,100, according to the All-Pakistan Gems and Jewellers Sarafa Association.
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