Pakistan’s total liquid foreign reserves experienced a significant increase, reaching US$ 12,855.7 million as of the week ending December 22, 2023.
The State Bank of Pakistan (SBP) reported a notable boost in the reserves held by the central bank, amounting to $7,757.1 million. This increase is primarily attributed to the receipt of official government inflows. Concurrently, the net foreign reserves held by commercial banks stood at $5,098.6 million.
The country’s total liquid foreign reserves were $12,068.4 million in the week ending December 15, 2023. The central bank held $6,904.8 million, while commercial banks accounted for $5,163.6 million in net foreign reserves.
Pakistan’s Auto Industry Facing Challenges
The Pakistani auto industry has faced significant challenges in 2023, with a drastic 55% drop in car sales. The production of car parts in factories also saw a substantial reduction, with a 70% cutback. This downturn was largely influenced by the crisis in exchange rates, leading to a marked decline in industry income until the previous year.
The reduced car sales have affected the national treasury and led to a noticeable decrease in revenue from automotive products. In response to the devaluation of the US dollar against the Pakistani rupee, automobile companies have reduced the prices of their units in the latter months of 2023, reflecting the economic adjustments within the sector.
