KARACHI: The foreign exchange reserves dropped by $551.7 million (2 percent) on a week-on-week basis to reach $23.35 billion during the week ended January 14, 2022.
According to the State Bank of Pakistan (SBP), the foreign exchange reserves dropped from $23.9 billion to $23.35 billion due to external debt and other payments.
The foreign currency reserves held by the SBP during the week decreased by $562 million (3 percent) on a week-on-week basis to $17 billion. The SBP’s foreign reserves were recorded at $17,597.9 million on January 07.
On the other hand, the reserves of commercial banks inched up by $10.5 million to $6.31 billion from $6.3 billion in the previous week. The foreign exchange reserves held by commercial banks fell $29 million to $6.30 billion from $6.33 billion in the previous week.
The foreign exchange reserves held by the central bank soared to an all-time high of $20.15 billion after Pakistan received a general allocation of Special Drawing Rights (SDRs) worth $2,751.8 million from the International Monetary Fund (IMF) on August 24.
Pakistan has been looking to build its foreign currency reserves on the back of loans, remittances, and higher exports. However, foreign direct investment continues to be an area of concern for policymakers.
The reserves level is also critical for Pakistan to build an import cover with the bill crossing $5 billion each month, putting pressure on the currency that fell to its weakest level against the US dollar this month.
