SBP foreign reserves decline 4.17 percent to $7.5bn

Karachi: Foreign exchange reserves held by the State Bank of Pakistan (SBP) fell by 4.17% following the recent trend.

The SBP’s foreign currency reserves were $7,498.7 million as of November 25, down $327 million from $7,825.7 on November 18, according to statistics supplied by the SBP.

The country’s total liquid foreign currency reserves, comprising net reserves held by banks other than the SBP, were $13,378.2 million.

Banks’ net reserves totaled $5,879.2 million. The central bank attributed the reduction to foreign debt payments.

Pakistan has an import cover of fewer than 1.6 months based on its current foreign exchange reserves position.

The reserves are projected to rise next week when the Pakistani government receives $500 million from the Asian Infrastructure Investment Bank (AIIB).

According to the Ministry of Finance’s tweet, the cash has been deposited with the SBP and will “supplement Pakistan’s reserves.”

The change was not shown in SBP statistics since the money was received after the cut-off date. The help will be reflected in the reserves the following week.

On the other hand, Pakistan must repay a $1.08 billion foreign bond that expires on December 5.

This payment may add to the already depleted foreign exchange reserves, as SBP Governor Jameel Ahmad confirmed in the post-monetary policy briefing that it would be made three days before its due date, December 5.