KARACHI: Pakistan foreign exchange reserves depleted by $827 million to $14.415 billion by week ended July 22, 2022, State Bank of Pakistan (SBP) said on Thursday.
The foreign exchange reserves of the country were $15.242 billion a week ago i.e. July 15, 2022.
The country’s foreign exchange reserves hit all-time high of $27.228 billion on August 27, 2021. Since then the foreign exchange reserves have declined by $12.813 billion.
The official reserves of the State Bank also fell by $754 million to $8.575 billion by week ended July 22, 2022 as compared with $9.329 billion a week ago.
The SBP attributed the decline in foreign exchange reserves to external debt repayments.
It is pertinent to mention that the SBP received about $2.3 billion from Chinese banks for buildup of foreign exchange reserves. However, despite receiving the amount the external debt payment kept the pressure on the reserves.
Further, the country is in negotiation with the IMF for release of next tranche under Extended Fund Facility (EFF) to boost its foreign exchange reserves.
The foreign exchange reserves held by the central bank witnessed a record high at $20.146 billion by week ended August 27, 2021. Since then the official reserves of the SBP declined by $10.571 billion.
The commercial banks held foreign exchange also witnessed a decline of $73 million to 5.84 billion by week ended July 22, 2022 when compared with $5.913 billion a week ago.
The sharp decline in foreign exchange reserves has resulted in free-fall of rupee value.
The local currency ended historic low of Rs239.94 to the dollar at closing of interbank foreign exchange market on July 28, 2022.