The State Bank of Pakistan (SBP) reported another decline in the country’s foreign exchange reserves on Thursday, as external debt repayments continue to weigh on the central bank’s holdings.
According to data released by the SBP, the foreign currency reserves held by the central bank stood at $11.372 billion as of January 24, reflecting a decrease of $76 million from $11.449 billion recorded on January 17. The SBP attributed the decline to external debt repayments.
Meanwhile, net reserves held by commercial banks also dropped, falling by $62 million to $4.68 billion from $4.741 billion the previous week.
As a result, Pakistan’s total liquid foreign exchange reserves, including those held by banks other than the SBP, fell by $137 million to $16.052 billion compared to $16.189 billion a week earlier.
It is worth noting that the central bank’s reserves have been under pressure in recent weeks. Last week, the SBP’s reserves fell by $276 million, and the overall reserves have struggled to maintain stability after crossing the $12 billion mark in late November last year. The continued decline highlights the challenges posed by external debt obligations and the need for measures to stabilize the country’s foreign exchange position.
