The State Bank of Pakistan’s foreign exchange reserves dropped by $540 million during the week ending March 21, falling to $10.607 billion from $11.147 billion the previous week, according to data released by the central bank on Thursday.

This significant decline has pushed the SBP’s reserves to their lowest level since September 20, 2024, raising concerns about the country’s external account position.

The country’s total liquid foreign exchange reserves, including those held by commercial banks, decreased by $465 million to stand at $15.551 billion. However, net reserves held by banks increased by $74 million during the week, reaching $4.944 billion.

The central bank did not provide specific reasons for the substantial drop in its reserves, which comes amid ongoing economic challenges and external debt obligations.

Financial analysts note that maintaining adequate foreign exchange reserves is crucial for Pakistan to meet its import requirements and service external debt payments in the coming months.