Foreign exchange: SBP reserves fall $119m to $4.19b

KARACHI: The foreign exchange reserves, held by the State Bank of Pakistan (SBP), dropped for the fourth consecutive week to below $4.2 billion, official data showed Thursday.

According to a statement issued by the central bank, the SBP’s foreign currency reserves stood at $4,193 million, down by $119 million as compared to $4,311.9 million on May 12.

The central bank attributed the decrease in reserves to external debt repayments.

Overall, the liquid foreign currency reserves held by the country, including the net reserves held by banks other than the SBP, stood at $9,731.1 million. The net reserves held by banks amounted to $5,538.1 million.

Pakistan’s economy is in turmoil amid financial woes and the delay in an agreement with the International Monetary Fund (IMF) that would release much-needed funding crucial to avoid the risk of default.

Earlier on May 12, the foreign exchange reserves had decreased $72 million to $4.31 billion due to external debt payment — which will be enough for less than a month’s worth of imports.