KARACHI: The State Bank of Pakistan (SBP) reported a further decline in its foreign exchange reserves, which fell by $367 million to reach $10.205 billion during the week ending April 18.
The decrease was primarily attributed to external debt repayments, according to a statement issued by the central bank on Thursday.
The country’s total foreign exchange reserves now stand at $15.436 billion, which includes $5.230 billion held by commercial banks.
Additionally, Pakistan’s dollar-denominated government bonds saw a drop of more than 4 cents on Thursday, as per data from Tradeweb, amid rising tensions with neighboring India.
Recent Scenario
Pakistan’s external reserves have been under pressure in recent months, with the State Bank of Pakistan (SBP) reporting a decline of $367 million in foreign exchange reserves for the week ending April 18, bringing the total to $10.205 billion.
This decrease is largely due to external debt repayments, which have contributed to a tight liquidity situation. Pakistan’s overall foreign exchange holdings now stand at $15.436 billion, including $5.230 billion held by commercial banks.
The country’s foreign reserves have been shrinking steadily, as external debt servicing, coupled with limited inflows, has strained the reserves.
This decline has further been compounded by external challenges, including geopolitical tensions with neighboring India.
Read More: SBP Acquires $4.98 Billion from Interbank to Strengthen Forex Reserves
As a result, Pakistan’s dollar-denominated government bonds saw a drop of more than 4 cents on Thursday, reflecting investor concerns.
In addition to these pressures, the country’s ongoing balance of payments issues have heightened concerns about the sustainability of reserves.
While the government continues efforts to secure financial support from international lenders, including the International Monetary Fund (IMF), the situation remains delicate.
Also Read: Debt Payments Cut Forex Reserves by 6-Month Low
The ongoing depletion of foreign reserves is a clear indicator of Pakistan’s vulnerability to external shocks and its need for urgent financial stabilization measures.
