ISLAMABAD (PEN) : Pakistan’s foreign exchange reserves have experienced a significant decrease of $2.66 billion in the past week, primarily due to scheduled repayments to Chinese and other international commercial lenders, according to the latest figures released by the State Bank of Pakistan (SBP).
Forex Reserve Details
The central bank’s dollar reserves dropped sharply from $11.72 billion to $9.65 billion during the week, underscoring ongoing challenges related to external debt servicing and balance of payments pressures.
Meanwhile, foreign currency deposits held by commercial banks saw a slight increase of $50 million, rising to $5.33 billion. As a result, Pakistan’s total forex reserves currently stand at $14.40 billion.
Factors Behind the Decline and Future Outlook
Sources from the banking sector attributed the fall mainly to debt repayments made to foreign creditors, including China and other commercial banks, as part of regular debt servicing schedules.
In a positive development, some commercial loan rescheduling has allowed Pakistan to recover previously paid funds earlier than planned. Additionally, the country secured \$500 million in loans from the World Bank and Asian Development Bank to support ongoing economic reforms and stabilize finances.
The government has also arranged new commercial loans totaling \$3.1 billion, expected to bolster reserves in upcoming weeks. These inflows are anticipated to be reflected in the next weekly forex update ending June 27, potentially providing temporary relief to the reserve position.
