Saturday, June 3, 2023

State Bank Reserves Drop to Alarming low $4.5 Billion after Loans Repayment

The foreign exchange reserves of Pakistan dipped further on Saturday to $4.5 billion after it repaid loans to two foreign banks.

Sources said the cash-strapped country paid $600 million to the Emirates NBD Bank and $420 million to the Dubai Islamic Bank.

The depleting foreign reserves have brought the country’s import cover down to nearly 25 days, adding to the woes of the importers and putting crucial imports like oil and LNG at risk.

Earlier this month, the State Bank of Pakistan (SBP) reported that the foreign exchange reserves hit an eight-year low of $5.576 billion during the week ended December 30, 2022.

The reserves fell further as the country paid external debts amid a severe economic crisis.

During the week ended December 30, 2022, the central bank’s forex reserves fell by $245 million to $5.57 billion, a statement from the central bank said Thursday, down from last week’s reserves of $5.821 billion.

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