The State Bank of Pakistan (SBP) witnessed a further decrease in itsforeign exchange reserves, with a weekly decline of $140 million, bringingthe total to $7.64 billion as of September 8, as revealed in recent datareleases. Concurrently, the country’s overall liquid foreign reservesamounted to $13.08 billion, while commercial banks held net foreignreserves of $5.44 billion. The central bank attributed this reduction inforeign currency reserves primarily to ongoing debt repayments.
Specifically, the SBP explained, “During the week ending on September 8,2023, SBP’s reserves declined by $140 million to reach $7,638.9 million,mainly due to debt repayments.”
The preceding week also saw a decrease of $70 million in SBP’s reserves.Over a span of four weeks, the central bank’s dollar holdings havecollectively diminished by a cumulative $416 million.
It’s important to note that in July, Pakistan’s foreign exchange reservesheld by the SBP received a significant boost. This boost was prompted bythe country’s receipt of the initial tranche of approximately $1.2 billionfrom the International Monetary Fund (IMF) following the approval of a new$3-billion Stand-By Arrangement.
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Additionally, Pakistan received inflows from Saudi Arabia and the UnitedArab Emirates, contributing to its foreign reserves during that period.
