SBP Reserves Decrease by $327 Million to $7.5 Billion

The foreign exchange reserves held by the central bank decreased by 4.2 percent on a weekly basis, according to data released by the State Bank of Pakistan (SBP) on Thursday.

On November 25, the foreign currency reserves held by the SBP were recorded at $7.498 billion, down $327 million compared to $7.825 billion on November 18 due to external debt repayment.

Overall liquid foreign currency reserves held by the country, including net reserves held by banks other than the SBP, stood at $13.378 billion. Net reserves held by banks stood at $5.879 billion, registering an increase of $60 million. Currently, the reserves are at their lowest level since July 2019.

According to Arif Habib Limited, the central bank reserves are enough for an import cover of only 1.11 months.

It is pertinent to mention here that during the week, Pakistan received $500 million from the Asian Infrastructure Investment Bank (AIIB) for social protection, food security, and support employment amid devastating floods and global supply chain disruptions.

However, the inflow is unlikely to boost reserves as the country is set to repay a $1 billion International Sukuk bond on Friday (tomorrow).