State Bank of Pakistan's Foreign Reserves Decline

Recently, the State Bank of Pakistan experienced a decrease in its foreign exchange reserves by $63 million during the week ending on May 24, 2024. This reduction was primarily due to external debt repayments. According to the latest data released by the central bank, the total liquid foreign reserves of Pakistan stood at $14.31 billion as of May 24, 2024.

The breakdown of the foreign reserves reveals that the State Bank of Pakistan retained $9.09 billion following the repayment of $63 million in external debt. Additionally, commercial banks in the country collectively held net foreign reserves amounting to $5.221 billion.

The decrease in Pakistan's foreign exchange reserves highlights the importance of managing external debt obligations effectively. It is crucial for the country to balance its debt repayments with maintaining adequate foreign reserves to ensure financial stability and economic resilience.