Amidst financial shifts, Pakistan’s foreign exchange reserves experienced a decline, with the State Bank of Pakistan (SBP) witnessing a weekly decrease of $217 million, marking a total of $7.2 billion as of November 17.
The country’s liquid foreign reserves, including net reserves held by commercial banks, reached $12.3 billion.
This reduction is attributed to debt repayments, stated the central bank in its recent release. The decline in reserves marks the second consecutive week of diminishing reserves, following a $115 million drop the previous week.
Earlier in July, Pakistan received a significant boost in reserves after securing the first tranche of approximately $1.2 billion from the International Monetary Fund (IMF) as part of a new $3-billion Stand-By Arrangement (SBA). Additional inflows from Saudi Arabia and the UAE contributed to the growth in reserves held by the central bank.
However, the recent pressures on SBP reserves can be attributed to increased import payments post-ease in restrictions, ongoing debt repayments, and a lack of substantial fresh inflows. This economic landscape has led to fluctuations in the country's financial dynamics, raising considerations about future investment and debt repayment strategies.
