Lahore Mirror — Pakistan’s foreign exchange reserves have experienced a decline, with the State Bank of Pakistan (SBP) revealing that the reserves stood at approximately $13.13 billion as of the week ending September 1, 2023.
This marks a decrease of $45 million compared to the previous week’s figure of $13.171 billion, recorded on August 25, 2023.
The SBP reported a $70 million decrease in its reserves during the week, primarily due to debt repayments. In parallel, commercial banks in Pakistan held net foreign reserves amounting to $5,347.4 million during the same period.
This marked a slight dip compared to the previous week’s reserves, which amounted to $13,171.1 million as of August 25, 2023. In that prior week, the central bank’s reserves were at $7,849.3 million, and commercial banks held net reserves totaling $5,321.8 million.
The reduction in foreign exchange reserves was primarily attributed to the government’s external debt payments. This highlights the challenges Pakistan faces in managing its external financial obligations and sustaining a stable balance of payments.
Foreign Exchange Reserves
Breaking down the numbers, the foreign exchange reserves held by the SBP decreased by $70 million, reaching $7.779 billion by the week ending September 1, 2023, down from $7.849 billion a week earlier. The central bank plays a crucial role in managing Pakistan’s foreign exchange reserves and ensuring the stability of the country’s currency.
On a relatively positive note, the reserves held by commercial banks in Pakistan increased by $25 million, reaching $5.347 billion by the week ending September 1, 2023, compared to $5.322 billion in the previous week. This rise in commercial bank reserves could provide some buffering and contribute to maintaining liquidity in the foreign exchange market.
As Pakistan grapples with ongoing economic challenges, including concerns about foreign exchange reserves, it remains imperative for policymakers and financial authorities to implement strategies aimed at bolstering reserves, attracting foreign investment, and addressing the country’s external debt obligations. These efforts are vital for ensuring stability in Pakistan’s economic landscape and sustaining investor confidence.
