- Reserves at their lowest level since January 2019
Foreign exchange reserves held by the State Bank of Pakistan (SBP) fell another $15 million to an alarming level of $6.7 billion, data released on Thursday showed. This is the lowest level of SBP-held reserves since January 2019.
Total liquid foreign reserves held by the country stood at $12.57 billion as of December 9, 2022, said the SBP. Net foreign reserves held by commercial banks clocked in at $5.87 billion.
“SBP’s reserves did not record any major change during the week ended on Dec 9, 2022, and closed at $6.7 billion,” said the central bank.
Last week, foreign exchange reserves held by the SBP fell $784 million to $6.715 billion.
Falling reserves have increased worries over Pakistan’s ability to meet debt obligations, and increased perceived default risks, especially at a time the country is in the midst of an economic crisis and recovering from devastating floods that killed over 1,700 people.