SBP foreign reserves go down by US$141 mn

KARACHI: Pakistan’s foreign reserves witnessed a decline of United States Dollar (USD) 141 million after external debt repayments of US$ 156.1 were made by March 15, ARY NEWS reported quoting State Bank of Pakistan (SBP).

According to the central bank, the total liquid foreign reserves held by the country stood at US$ 18,618.3 million on 15 May.

According to a break-up of the reserves provided by the SBP, the foreign reserves held by the State Bank stand at $12,129.3 million while commercial banks hold liquid foreign reserves of $6,489 million

It further said that during the week ending on 15 May, the SBP reserves decreased by US$ 141 million to US$ 12,129.3 million as external debt repayments of US$ 156.1 million were made.

It is pertinent to mention here that on May 15, the State Bank of Pakistan (SBP) reduced the policy rate by 100 basis points to eight per cent, the fourth cut by the central bank since COVID-19 outbreak emerged in the country two months ago.

In a statement, SBP said that the Monetary Policy Committee (MPC), in its meeting today, decided to reduce the policy rate by 100 basis points to eight per cent.

This decision reflected the MPC’s view that the inflation outlook has improved further in light of the recent cut in domestic fuel prices. As a result, inflation could fall closer to the lower end of the previously announced ranges of 11-12 percent this fiscal year and 7-9 percent next fiscal year, read the statement