Pakistan’s Foreign Exchange Reserves Dip to $13.15 Billion Amid Debt Repayments

According to the State Bank of Pakistan (SBP) data, Pakistan’s liquid foreign exchange reserves have decreased to $13.1451 billion as of January 12. The SBP’s reserves witnessed a decline of $127 million to $8,027.4 million during the week ending on January 12, primarily attributed to debt repayments. The overall liquid foreign reserves, which include both SBP and commercial banks, now stand at $13,145.1 million, with SBP holding $8,027.4 million and commercial banks holding $5,117.7 million.

Comparing to the previous week’s data as of January 5, 2023, the total liquid foreign reserves were $13,256.6 million, with central bank reserves at $8,154.8 million and commercial banks holding $5,101.8 million. The recent decline in reserves reflects a reduction from the previous week’s total.

Despite the decrease in foreign exchange reserves, SBP reported an improvement in the current account balance for July to December 2023, with the current account deficit recorded at $83.1 million. This is a significant improvement from the $3.62 billion deficit recorded in the same period of the previous fiscal year (FY23). The recent positive trend in the current account balance indicates favorable economic developments for Pakistan.

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