The foreign exchange reserves held by the central bank decreased by 4 percent on a weekly basis, according to data released by the State Bank of Pakistan (SBP) on Thursday.
On April 7, the foreign currency reserves held by the SBP were recorded at $4.038 billion, down $170 million compared to 4.208 billion on March 31, which is not sufficient to cover even a month’s worth of essential imports.
Overall liquid foreign currency reserves held by the country, including net reserves held by banks other than the SBP, stood at $9.56 billion, down $195 million or 2 percent over the previous week.
The net reserves held by banks stood at $5.526 billion, registering a decrease of $26 million during the week. As per the data, the current reserves are enough for an import cover of less than a month.
The lack of foreign currency reserves has put massive pressure on an economy heavily reliant on imports. While the central bank has curbed inward shipments for shrinking the current account deficit, many businesses have been forced to close.
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