As Pakistan paid external debts during a severe economic crisis, the State Bank of Pakistan’s (SBP) foreign exchange reserves fell.
The SBP’s forex reserves fell $245 million to $5.57 billion in the week ended December 30, 2022, a statement said Thursday.
The statement said the total foreign reserves held by commercial banks are $11.42 billion.
The reserves, at their lowest level since April 2014, will cover imports for 1.06 months as the country tries to reduce imports amid a dollar shortage.
The National Security Committee (NSC) agreed to strengthen the economy this week by rationalizing imports and preventing illegal currency outflows and hawala business.
Pakistan must repay $8.3 billion in external debt over the next three months (Jan-March) of the current fiscal year.
The government wants to pass the ninth IMF review to secure a $1.7 billion bailout package, but neither side has made much progress in recent days.
Finance and Revenue Minister Ishaq Dar said the country would meet its international obligations and not default.
Saudi Arabia and China will increase their deposits in Pakistan “within days,” says Dar, and forex reserves will rise gradually this fiscal year.
