In a recent report, it was revealed that the foreign exchange reserves held by the State Bank of Pakistan (SBP) experienced a decline of $127 million during the week ending January 12, settling at $8.03 billion.

The country’s total liquid foreign reserves, including those held by commercial banks, amounted to $13.15 billion. Specifically, commercial banks held net foreign reserves of $5.12 billion.

The SBP attributed the reduction in reserves to debt repayments, stating, “During the week ending on January 12, 2024, the SBP’s reserves decreased by US$ 127 million to US$ 8,027.4 million due to debt repayments.”

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Notably, the previous week had also seen a decrease in Pakistan’s central bank reserves, amounting to $66 million.

In a significant development, Pakistan received a tranche of $705.6 million from the International Monetary Fund (IMF), as confirmed in a statement by the SBP on Wednesday.

The central bank stated, “The SBP has received SDR 528 million (equivalent to $705.6 million) on January 16, 2024, from the IMF following the successful completion of the first review by the Executive Board of the IMF under Standby Arrangement (SBA).”

The impact of this disbursement will be reflected in the central bank reserves for the week ending January 19.