Pakistan Foreign Exchange Reserves suffer significant decline

Pakistan Foreign Exchange Reserves suffer significant decline

Pakistan’s liquid foreign reserves witnessed an outflow of $385 million in the week that ended on March 11, 2022, depicting a 1.7 percent dip on a week-on-week basis.

The State Bank of Pakistan’s (SBP) weekly report released on Thursday revealed that the country’s total liquid foreign exchange reserves went down by $385.3 million on March 11, 2022, to $22.28 billion, compared to $22.66 billion in the previous week. SBP’s reserves decreased by $380.6 million to $15.83 billion (-2.34%), compared to $16.21 billion a week earlier.

Meanwhile, the net foreign reserves held by the commercial banks stood at $6.4 billion, showing a decrease of $4.7 million on a weekly basis.

The decline in foreign exchange is attributed to the payment against debt servicing to various lenders and the global onslaught of inflationary pressures.