The foreign reserves held by the State Bank of Pakistan (SBP) witnessed astaggering outflow of $2.915 billion in the week that ended on March 25,2022, depicting a 19.5 percent decline on a week-on-week basis.
The central bank’s reserves have dropped to their lowest level since June26, 2020, when they stood at $11.23 billion.
The SBP weekly report released on Thursday revealed that the country’stotal liquid foreign exchange reserves went down by $2.885 billion (-13.4%)on March 25, 2022, to $18.55 billion, compared to $21.44 billion in theprevious week. The SBP reserves decreased by $2.91 billion to $12.05billion, compared to $14.96 billion a week earlier.
Meanwhile, the net foreign reserves held by the commercial banks stood at$6.5 billion, showing an increase of $29.9 million on a weekly basis. Thisdecline reflects repayment of external debt, including repayment of a majorsyndicated loan facility from China. The rollover of this facility is beingprocessed and is expected shortly.
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According to reports, China has agreed in principle on granting a freshrollover of $2.5 billion in commercial loans to Pakistan for one year.Beijing already granted a rollover of a $2 billion loan amount in therecent past. Overall, China has granted a rollover of approximately $4.5billion in loans to help Islamabad manage its external sectorvulnerabilities.
Foreign Minister, Shah Mehmood Qureshi has currently been on a visit toChina. In his video message, he confirmed that China had agreed inprinciple to roll over loans for which Pakistani authorities made a freshrequest. Now, both sides are working out the details and an announcementwill be made soon after the completion of procedural requirements.
