Pakistan Foreign Exchange Reserves suffer significant decline
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The State Bank of Pakistan (SBP) has reported a decrease of $140 million in Pakistan's foreign exchange reserves for the week ending September 8, bringing the total to $7.638 billion. In tandem, the country's overall reserves saw a decline of $48 million, settling at $13.079 billion. However, there was a notable uptick in the reserves held by commercial banks, which increased by $93 million, reaching $5.440 billion.
The SBP has attributed this decline in foreign exchange reserves to the repayment of external debts. It is crucial to highlight that Pakistan's liquid foreign reserves experienced a substantial surge after the signing of the Staff Level Agreement (SLA) with the International Monetary Fund (IMF).
This boost was fueled by a $1.2 billion immediate disbursement from the IMF, a $2 billion deposit from Saudi Arabia, and an additional $1 billion deposit from the United Arab Emirates (UAE).
Consequently, during the current fiscal year, Pakistan's total liquid foreign reserves have witnessed an impressive increase of $3.9 billion, marking a substantial growth of 42.45%. This demonstrates the country's efforts to strengthen its financial stability and meet its external obligations while fostering economic growth
