Pakistan State Bank’s forex reserves drop to touch four-year low point

Islamabad: The foreign exchange reserves held by the State Bank of Pakistan (SBP) dropped to USD 784 million to a nearly four-year low of USD 6.72 billion during the week that ended on Dec 2, informed the central bank recently.

IBNS • 12 Dec 2022, 05:18 am

According to the central bank data, the SBP reserves were last recorded below this level during the week ended on Jan 18, 2019, when it had some USD 6.64 bn, reports Dawn News.

Net foreign reserves held by commercial banks now stand at USD 5.867 bn, meaning the country’s total liquid foreign reserves are now USD 12.58 bn.

Strengthening the foreign exchange reserves remained the top agenda of the new government since it took the helm in April.

However, SBP’s reserves have since dropped by more than USD 4 bn from around USD 10.9 bn at the time, the newspaper reported.

Analysts told the newspaper the falling reserves may make it more difficult for the country to repay foreign loans; the remaining amount of over USD 6.7 bn is just enough to cover over a month’s imports.