Pakistan’s Central Bank Reserves Experience $237 Million Decline, Now Stand at $7.02 Billion
Total liquid foreign reserves held by country stand at $12.1 billion as of December 1
Karobar
In a recent update, data released on Thursday revealed that the foreign exchange reserves of the State Bank of Pakistan (SBP) witnessed a weekly decrease of $237 million, reaching $7.02 billion as of December 1.
As of the same date, the total liquid foreign reserves for the country were recorded at $12.1 billion, with commercial banks holding net foreign reserves amounting to $5.08 billion.
The SBP attributed this decline to ongoing debt repayments, emphasizing that during the week ending December 1, 2023, its reserves dipped to $7,020.2 million due to debt servicing.
Liquid Foreign Exchange Reserves: 01-Dec-2023
Total reserves: $ 12.1bn, down by $ 286mn
SBP reserves: $ 7.0bn, down by $ 237mn
Banks reserves: $ 5.1bn, down by 49mn
Import cover: 1.40 months
@StateBank_Pak #SBP #FXReserves #Pakistan #Economy #AHL pic.twitter.com/LOQOicdqc5 — Arif Habib Limited (@ArifHabibLtd) December 7, 2023
Contrary to the current decrease, the previous week had seen a positive trend, with Pakistan’s central bank reserves registering an increase of $77 million.
It's important to note that Pakistan's central bank experienced a boost in reserves back in July. This was attributed to receiving the first tranche of approximately $1.2 billion from the International Monetary Fund (IMF) following the approval of a new $3-billion Stand-By Arrangement (SBA). Additional inflows were received from Saudi Arabia and the UAE.
However, despite these previous boosts, the SBP reserves have faced pressure due to factors such as ongoing debt repayments, increased import payments following the relaxation of restrictions, and a lack of fresh inflows.
In a significant development, the IMF announced last month that its staff and Pakistani authorities had reached a staff-level agreement on the first review of the SBA. The agreement, subject to approval by the IMF Executive Board, would make around US$700 million available, bringing total disbursements under the program to almost US$1.9 billion.
Caretaker Finance Minister Dr Shamshad Akhtar, speaking to the media after the staff-level agreement, expressed confidence that external financing would not pose an issue. She stated that the government anticipates an inflow in December 2023, which is expected to contribute to an increase in foreign exchange reserves.
