SBP-held forex reserves fall $157mn to stand at $7.44bn, ADB's loan to be reflected next week

Foreign exchange reserves held by the State Bank of Pakistan (SBP) decreased $157 million on a weekly basis, clocking in $7.44 billion as of October 21, 2022, according to data released on Thursday.

Net foreign reserves held by commercial banks amounted to $5.72 billion, taking the country's total reserves' position to $13.16 billion.

"During the week ended on October 21, 2022, SBP’s reserves decreased by $157 million to $7,439.9 million due to external debt repayment," said the SBP in a statement.

No major weekly change: SBP-held foreign exchange reserves stand at $7.6bn

SBP received $1.5 billion from ADB on October 26, 2022 as disbursement of loan for the government of Pakistan.

“These proceeds will be reflected in SBP reserves for the week ending October 28, 2022,” it said.

In September, SBP's reserves had increased as the central bank received the $1.2-billion tranche from the International Monetary Fund (IMF).

The Saudi Development Fund also rolled over a $3-billion deposit with the SBP, an amount that was due to mature in December 2022. However, this development was not meant to increase foreign exchange as the amount was already part of SBP's reserves.

The reserves’ position is critical for Pakistan which has been desperately seeking dollar inflows to meet its balance-of-payments needs.