Crisis alert: SBP forex reserves fall to 4.5bn after debt payments
- By Web Desk -
- Jan 07, 2023
KARACHI: The foreign exchange reserves held by the State Bank of Pakistan (SBP) continued their declining spree, plunging by $1.2bn to reach $4.5 billion, citing sources, ARY News reported on Saturday.
According to sources, the SBP-held foreign exchange reserves have fallen to $4.5 billion after the new debt repayments to UAE.
Pakistan paid back $600mn to the Emirates NBD Bank and $415mn to the DIB on Friday, they say.
Read More: PAKISTAN WILL NOT DEFAULT, ISHAQ DAR ASSURES INVESTORS AT PSX
After the fresh debt repayments, the forex reserves have dropped to $4.5bn, sufficient for only 25 days of import cover, they say.
On Thursday, the central bank reported that foreign reserves had fallen to $5.6 billion as of December 30, 2022.
According to the data issued by State Bank of Pakistan, the total liquid foreign reserves held by the country stood at $11.43 billion.
Total liquid foreign #reserves held by the country stood at US$ 11.42 billion as of December 30, 2022.
For details https://t.co/WpSgomnKT3 pic.twitter.com/1uJn3rmSLG— SBP (@StateBank_Pak) January 5, 2023
“During the week ended on December 30, 2022, SBP-held foreign exchange reserves decreased by $245 million to $5,576.5 million due to external debt repayment,” said the central bank.
It is pertinent to mention here that Pakistan expects a refinance of $700 million from the Chinese Development Bank, and a $3 billion cash injection from Saudi Arabia. Dar stated that this would happen “in days”.
The finance minister has repeatedly ruled out any threat of default and expressed confidence that the country will successfully steer out from the current economic situation.