Pakistan’s short-term FX liabilities reach $29.1bn

January 29, 2025 (MLN): Due to maturing foreign currency loans, securities, and deposits, Pakistan's foreign currency assets are expected to see a net outflow of $29.1 billion in the short term, according to data released by the State Bank of Pakistan (SBP).

The total outflow is categorized based on residual maturity, with the most pressing concern being the more than three months up to one-year segment, which accounts for a substantial $23.3bn in net drains.

Meanwhile, outflows of $1.6bn are expected within the next month, and an additional $4.18bn will mature in the one-to-three-month window.

The principal outflows amount to $25.4bn, of which $20.6bn falls in the one-year maturity range. Interest payments add another $3.68bn to the financial burden.

Aggregate short and long positions in forwards and futures indicate a net shortfall of $2.99bn. 

Short positions dominate at $3.18bn, while long positions provide only a modest offset of $188m.

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