Pakistan’s central bank reserves fall below $7bn after over 5 months

  • State Bank of Pakistan attributes decline in reserves to debt repayments
Published December 21, 2023

Foreign exchange reserves held by the State Bank of Pakistan (SBP) decreased by $136 million on a weekly basis, clocking in at $6.9 billion as of December 15, data released on Thursday showed.

This brings the SBP reserves to an over five-month low as the dollar stockpile was last seen below $7 billion on July 7, 2023 when the reserves stood at $4.5 billion.

This week, total liquid foreign reserves held by the country stood at $12 billion. Net foreign reserves held by commercial banks stood at $5.1 billion.

The central bank attributed the decline in the reserves to debt repayments.

“During the week ended on 15-Dec-2023, SBP’s reserves decreased by US$ 136 million to US$ 6,904.8 million due to debt repayments,” it said.

Last week, Pakistan’s central bank reserves had increased by $21 million.

After an alarmingly low level in July, reserves held by the central bank got a boost as Pakistan received the first tranche of around $1.2 billion from the International Monetary Fund (IMF) after the lender approved a new $3-billion Stand-By Arrangement (SBA). It also got inflows from Saudi Arabia and the UAE.

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

In a major breakthrough, the IMF announced last month that its staff and Pakistani authorities had reached an agreement on the first review of the SBA.

The staff-level agreement is subject to approval by the IMF Executive Board, which is scheduled to meet on January 11.

“The IMF team has reached a staff-level agreement (SLA) with the Pakistani authorities on the first review of their stabilisation program supported by the IMF’s US$3 billion (SDR2,250 million) SBA,” the IMF said in its press release then.

“The agreement is subject to approval of the IMF’s Executive Board. Upon approval around US$700 million (SDR 528 million) will become available bringing total disbursements under the program to almost US$1.9 billion,” it added.


200 characters
BasiT Ali Dec 21, 2023 10:01pm
I am student I request u plaeasss I request except U thank u so much
thumb_up Recommended (0) reply Reply
BasiT Ali Dec 21, 2023 10:01pm
I am poor Ma I request except u
thumb_up Recommended (0) reply Reply
BasiT Ali Dec 21, 2023 10:01pm
thumb_up Recommended (0) reply Reply
Arif Dec 21, 2023 10:07pm
Since we refuse to change and keep repeating same mistakes again and again , very soon we will be facing default and self destruction.
thumb_up Recommended (0) reply Reply
M moaiz ali Dec 21, 2023 10:38pm
I am student I reale need pls arrange for me .
thumb_up Recommended (0) reply Reply
Touqeer ahmed Dec 21, 2023 10:57pm
I am student need a bike
thumb_up Recommended (0) reply Reply
Mustaq ahamd Dec 21, 2023 11:10pm
thumb_up Recommended (0) reply Reply
Syed Hassan Ali. Dec 21, 2023 11:11pm
Bike apny he pass rakho ...IMRAN KHAN and full support to PTI
thumb_up Recommended (0) reply Reply
Muhammad Shahid Dec 21, 2023 11:55pm
Main gharib admi hun ghar b nhi ha
thumb_up Recommended (0) reply Reply
Afia Dec 22, 2023 01:44am
thumb_up Recommended (0) reply Reply