Pakistan’s central bank reserves decrease $59mn, now stand at $7.64bn

Foreign exchange reserves held by the State Bank of Pakistan (SBP) decreased by $59 million on a weekly basis, clocking in at $7.64 billion as of September 22, data released on Thursday showed.

Total liquid foreign reserves held by the country stood at $13.16 billion. Net foreign reserves held by commercial banks stood at $5.52 billion.

The central bank cited debt repayments as the reason for decrease in the reserves.

“During the week ended on 22-Sep-2023, SBP’s reserves decreased by US$ 59 million to US$ 7,636.7 million on account of debt repayments,” it said.

Last week, after falling for four straight weeks, Pakistan’s central bank reserves increased by $56 million.

Before that, the SBP reserves saw cumulative decline of $416 million in four weeks.

In July, reserves held by the SBP got a boost as Pakistan received the first tranche of about $1.2 billion from the International Monetary Fund (IMF) after its lender approved a new $3-billion Stand-By Arrangement. It also got inflows from Saudi Arabia and the UAE.

However, the central bank reserves have been under pressure due to debt repayments, rise in import payments after ease in restrictions, and lack of fresh inflows.