The State Bank of Pakistan (SBP) reported on Monday that the country has repaid a heavy external debt of $1.3 billion.
The repayment has led to a decline in the country’s foreign exchange reserves, the central bank stated. The SBP added that despite large outflows, the official dollar reserves are expected to remain stable. It added that official reserves will rise above $18 billion by June 30.
Foreign exchange reserves near $24bn
Total foreign exchange reserves are projected to approach $24 billion by the end of June. The central bank reported that $700 million were received from international financial institutions.
A further $1.7 billion have been received under commercial loan refinancing arrangements. It was stated that $2.4 billion dollars will be reflected in the reserves position on June 30.
Last week, the SBP’s dollar reserves stood at $15.92 billion following debt repayments. The commercial banks held deposits amounting to $5.57 billion during the same period.
