Karachi November 10 2022: SBP foreign exchange reserves for the week ending November 4 2022, were decreased by USD 956 million to USD 7,957 million as per data released by the Central Bank.
Reserves decline due to external debt payments includes repayment of Governments commercial loans, according to State Bank of Pakistan. However, refinancing of these loans is in process which will improve foreign exchange reserves in the coming weeks.
At present, SBP reserves stand at the level of USD 7,957 million as of 4th November 2022, compared to USD 8,912 million at the end of the week ending 28th October 2022.
During the same period, foreign exchange reserves held by commercial banks decreased by USD 2 million to the level of USD 5,764 million as of 4th November 2022.
Overall reserves held by the country witnessed decrease of USD 958 million to USD 13,721 million during the week ended 4th November 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.
