April 25, 2024 (MLN): The foreign exchange reserves held by the State Bank of Pakistan (SBP) declined by $73.5 million or 0.91% WoW to $7.98 billion during the week ended on April 19, 2024, according to the data released by the central bank on Thursday.
The central bank cited debt repayments as the reason for this decline.
"During the week ended on April 19, 2024, SBP’s reserves decreased by $74m to $7.98bn due to external debt repayments," said a statement issued by the SBP.
Similarly, the country's total reserves fell by $93.2m or 0.7% WoW to $13.28bn.
The reserves held by commercial banks diminished by $19.7m or 0.37% WoW to $5.3bn.
Last week, SBP reserves had risen $14.4m despite a $1bn Eurobond repayment.
In a recent development, the executive board of the International Monetary Fund (IMF) is scheduled to meet on April 29 to discuss the approval of $1.1bn funding for Pakistan.
The funding is the second and last tranche of a $3bn standby arrangement with the IMF, which it secured last summer to avert a sovereign default and which runs out this month.
The South Asian nation is seeking a new long-term, larger IMF loan.
Federal Minister for Finance Muhammad Aurangzeb has said that he expects the foreign exchange reserves held by the SBP to rise to around $9-10 billion by the end of current fiscal year.
To note, in the current fiscal year, total liquid foreign reserves have increased by $4.12bn or 44.98%.
Meanwhile, the current calendar year has seen an increase of $0.61bn or 4.79%.
