ISLAMABAD (Eshfak Mughal):- The Pakistani’s official foreign reserves held by State Bank of Pakistan (SBP) was decreased by $754 million to $8.575 billion during last week due to heavy repayments of foreign debt and debt servicing.
According to the SBP, the foreign currency reserves held by the SBP were shrunk by $754 million to $8.575 billion from $9.329 billion on July 22, 2022.
The massive decreased in the official forex reserves was decreased mainly due to heavy repayments of external loans and financial responsibilities and their debt servicing.
Overall liquid foreign currency reserves held by the country, including net reserves held by banks other than the SBP, stood at $14,414.6 million. Net reserves held by banks amounted to $5,839.5 million, according to the SBP.
The total volume of the official forex reserves remains equal to the country’s import bill of 1.5 months, according to the analyses. According to the definition of the IMF, the country like Pakistan must has official forex reserves to cover the country’s import bill of 3 months.
Meanwhile, the Pakistani rupee nosedived by Rs3.92 in a single day to hit an all-time low at Rs239.94 against the dollar in the interbank market today; however, the SBP cannot smoothen the disorderly movement because of limited foreign exchange reserves position, as well as bindings of the International Monetary Fund (IMF) considerations.
However, with Pakistan reaching a staff-level agreement with the Fund foreign exchange reserves are expected to improve after the receipt of $1.17 billion from the global lender.