The State Bank of Pakistan (SBP) reported a decrease of $220 million in foreign exchange reserves for the week, bringing the total to $7.5 billion as of October 20, 2023, according to data released on Thursday.
The country’s total liquid foreign reserves now amount to $12.6 billion, with commercial banks holding reserves worth $5.1 billion.
The central bank attributes this decline in reserves to debt repayments. During the week, Pakistan’s central bank reserves experienced an increase of $67 million.
In July of this year, inflows from the International Monetary Fund (IMF), Saudi Arabia, and the UAE provided a boost to the bank's reserves as part of a $3 billion Stand-by Arrangement (SBA). However, ongoing debt repayments, increased import payments following eased restrictions, and a lack of inflows have put pressure on the bank's reserves.
