Reserves held by the State Bank of Pakistan (SBP) decreased by a massive $2.915 billion, falling to $12.05 billion, revealed data released by the central bank on Thursday.

"This decline reflects repayment of external debt, including repayment of a major syndicated loan facility from China," said the SBP. "The rollover of this syndicated facility is being processed, and is expected shortly."

Meanwhile, total liquid foreign reserves held by the country stood at $18.55 billion. Net foreign reserves held by commercial banks stood at $6.5 billion.

SBP's foreign exchange reserves fall to lowest level in almost a year

Pakistan's foreign exchange reserves have been under pressure since December last year. While the country has been looking to build its foreign currency reserves on the back of loans, remittances, and higher exports, foreign direct investment continues to be an area of concern for policymakers.

On the other hand, the rupee continues to remain under pressure against the US dollar, and hit yet another record low on Thursday.