The Forex reserves held by the State Bank of Pakistan (SBP) fell another $245 million to $5.58 billion. According to the statement issued by the central bank, “During the week ended on December 30, 2022, SBP’s reserves decreased by $245 million to $5,576.5 million due to external debt repayment.”
The Forex Reserves Took a Huge Blow in The Past Year
The foreign exchange reserves were around $18 billion at the beginning of the year(2022) but have undergone significant depletion during the last 12 months; a huge chunk of it goes to the external debt repayment. On the other hand, the finance minister, Ishaq Dar, has said that the position of Forex reserves will improve by the end of June.
The total liquid foreign reserves held by the country stood at $11.71 billion, while the net foreign reserves held by commercial banks stood at $5.89 billion. The overall liquid foreign currency reserves held by the country, including the net reserves held by banks other than the SBP, stood at $12,000.1 million.
Pakistan is Expecting Support from Saudia Arabia
Pakistan’s economy is facing a balance of payment crisis, with central bank reserves falling to an alarming level. In this case, Pakistan is expecting help from a friendly country and one of its biggest allies, Saudi Arabia. As per sources, Pakistan is expecting multi-billion dollar support from Saudi Arabia. Earlier, Ishaq Dar said, “All nations of the world opt for borrowing new money to pay old liabilities or they opt for rollover. We are opting for rolling over of deposits.”