Islamabad January 12 2023: SBP foreign exchange reserves for the week ending January 6th 2023, were decreased by USD 1,233 million to lowest level since February 2014, as per data released by the Central Bank.
During the year forex exchange reserves dropped by USD 12.1 billion, according to data of Central Bank. Pakistan run Current Account Deficit of USD 11.4 billion in first eleven months of calendar year 2022.
Central bank reserves decline on payment of external debt, according to the statement issued by the Central Bank. According to the data, this is the lowest level of central bank reserves since 28th February 2014.
Saudi Arabia, UAE and China were set to beef up Pakistan’s foreign exchange reserves much before the close of this month, according to finance minister.
Today, the President of the UAE agreed to roll over the existing loan of USD 2 billion and provide USD 1 billion additional loan.
In another development, the CEO of the Saudi Fund for Development (SFD), Sultan Abdulrahman Al-Marshad, and the Secretary Ministry of Economic Affairs in Pakistan, Dr. Kazim Niaz, signed an agreement to finance oil derivatives worth USD 1 billion to Pakistan.
All debt repayments are on track and country’s foreign exchange reserves are expected to increase in second half of the current fiscal year, said Governor State Bank of Pakistan (SBP), Jameel Ahmad.
At present, SBP reserves stand at the level of USD 4,343 million as of 6th January 2023, compared to USD 5,576 million at the end of the week ending 30th December 2022.
During the same period, foreign exchange reserves held by commercial banks decreased by USD 1 million to the level of USD 5,845 million as of 6th January 2023.
Overall reserves held by the country witnessed decrease of USD 1,235 million to USD 10,188 million during the week ended 6th January 2023.
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