State Bank of Pakistan’s (SBP) foreign exchange reserves decreased by 2.23% on a weekly basis, data released by the central bank showed Thursday.On December 17, the foreign currency reserves held by the central bank were recorded at $18,153.7 million, down by $415 million compared with $18,568.3 million on December 10.
The central bank cited external debt repayments as a reason behind the weekly decline.Meanwhile, overall liquid foreign currency reserves held by the country, including net reserves held by banks other than the SBP, stood at $24,633 million. Net reserves held by banks amounted to $6,479.3 million.The total liquid foreign reserves held by the country stood at US$ 24,633.0 million on 17-December-2021.
The current account deficit has been controlled by FX reserves and a financial account surplus, which rose to US$ 9.6 billion in FY17 from US$ 6.8 billion at the same point the year before. This accumulation accounts for both the increases in official inflows and the impact of rising private sector borrowing for CPEC projects. SBP’s foreign exchange reserves dropped from US$ 18.1 billion at the end of FY16 to US$ 16.1 billion at the end of FY17 as a result of these events. Global projections suggest that things will improve in the future, with more growth and trade with other nations anticipated in FY18.
This assessment, along with positive internal policy actions, point to a rise in Pakistan’s exports.
The stability of the external account and the instrumental reserve buildup depend on the timely entrance of budgeted bilateral and financial inflows in FY18, even if it is still uncertain whether remittances will begin to exhibit notable positive development.
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