SBP’s Forex Reserves Fall To $9.8 Billion

SBP’s reserves have declined by $7.5 billion during the fiscal year 2021/22

KARACHI: The State Bank of Pakistan’s (SBP) foreign exchange reserves again fell below $10 billion in the week that ended June 30 on foreign debt and import payments, it said on Thursday.

The SBP’s foreign exchange reserves dropped by $493 million to $9.8 billion as of June 30. The reserves held by the SBP are barely enough to cover 1.42 months of imports.

The country’s forex reserves fell by $453 million to $15.7 billion. Reserves held by commercial banks, however, rose by $40 million to $5.9 billion.

The forex reserves are depleting fast amid a stalled $6 billion International Monetary Fund programme. The country is also struggling with a widening current account deficit weighed down by higher imports, and surging inflation.

The SBP’s reserves have declined by $7.5 billion during the fiscal year 2021/22. The reserves stood at $17.3 billion in the previous year.

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