Karachi October 6 2022: SBP foreign exchange reserves for the week ending September 30 2022, were decreased by USD 106 million to USD 7,899 million as per data released by the Central Bank.
Central Bank reserves decline on due to external debt repayment which includes interest payments on Eurobonds, says SBP in a statement.
Pakistan Central Bank reserves will increase once committed amount of aid for the flood victims starting coming to the country.
The Asian Development Band (ADB) will provide flood relief support to Pakistan to the tune of US$ 2.3 to 2.5 billion including US$ 1.5 billion for the BRACE program which will be placed before the ADB Board for approval during this month, Country Director ADB for Pakistan Yong Ye told Finance Minister Senator Mohammad Ishaq Dar, who along with his delegation called on the minister at the Finance Division here Wednesday.
Yong Ye also apprised the minister about the ongoing and future projects of ADB in different sectors including social protection, food security and energy sectors.
At present, SBP reserves stand at the level of USD 7,899 million as of 30th September 2022 compared to USD 8,006 million at the end of the week ending 23rd September 2022.
During the same period, foreign exchange reserves held by commercial banks decreased by USD 67 million to the level of USD 5,689 million as of 30th September 2022.
Overall reserves held by the country witnessed decrease of USD 173 million to USD 13,588 million during the week ended 30th September 2022.
Pakistan Central Bank projected that with the completion of the upcoming IMF review and the additional assistance secured from friendly countries, FX reserves are expected to rise to around $16 billion during FY23. To ensure this and to support the Rupee going forward, it will be important to contain the current account deficit to around 3 percent of GDP by moderating domestic demand and energy imports. In addition, it will be critical to keep the IMF program on-track by following through on the agreed fiscal tightening and structural reforms over the next 12 months.
