SBP’s forex reserves fall to eight-year low at $5.8 billion
State Bank of Pakistan’s (SBP) foreign exchange reserves further decreased by $294 million to $5.8 billion, making it even more difficult for the country to repay its foreign debts. This is the lowest level of SBP-held reserves since April 2014.
Federal Finance Minister Ishaq Dar insists that Pakistan will not go bankrupt, but the facts on the ground do not support his claims.
Since the beginning of financial year 2022-23, the forex reserves of the central bank have been continuously decreasing; country’s economy analysts and experts believe that the country is close to default.
“During the week ended on Dec 23, 2022, SBP’s reserves decreased by $294 million to $5.82 billion due to external debt repayment,” said the SBP.
Last week, foreign exchange reserves held by the SBP had fallen $584 million to $6.12 billion.
Total liquid foreign reserves held by the country stood at $11.71 billion. Net foreign reserves held by commercial banks stood at $5.89 billion.
On the other hand, Pakistan is losing $300 million per month in remittances.