Islamabad, Jan 24: Pakistan’s foreign exchange reserves have experienced a significant dip in the latest weekly report from the State Bank of Pakistan (SBP). As of January 17, the SBP’s foreign currency reserves were recorded at $11.449 billion, reflecting a decrease of $276 million from the previous week, when the reserves stood at $11.725 billion on January 10. The SBP attributed this reduction to the repayment of external debts, which put pressure on the country’s foreign currency reserves.
The total liquid foreign currency reserves of Pakistan, which include both the reserves held by the SBP and those held by commercial banks, amounted to $16.189 billion. This represents a decrease of $262 million compared to the reserves of $16.451 billion recorded the previous week. These figures underscore the challenges faced by the country in maintaining adequate foreign reserves amidst financial obligations and global economic pressures.
On a more positive note, the reserves held by commercial banks, excluding those managed by the SBP, showed a slight improvement. As of January 17, the net reserves held by banks were $4.741 billion, a modest increase of $15 million from $4.726 billion recorded the week before. This suggests that commercial banks may have been able to manage their reserves more effectively in the short term.
The recent decline in the SBP’s reserves highlights Pakistan’s ongoing struggle with external debt payments and the need for effective financial management. Despite the drop in total reserves, the increase in commercial bank holdings is a small positive sign. The situation calls for strategic efforts to stabilize and grow foreign exchange reserves to support the country’s economic resilience and ability to meet international obligations.
