Karachi, September 7, 2023 – Pakistan’s foreign exchange reserves have seen a decline, with the State Bank of Pakistan (SBP) reporting that the reserves stood at approximately $13.13 billion as of the week ending September 1, 2023.
This represents a drop of $45 million compared to the previous week’s figure of $13.171 billion, recorded on August 25, 2023.
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The decrease in foreign exchange reserves was primarily attributed to external debt payments made by the government. This development underscores the challenges Pakistan faces in managing its external financial obligations and maintaining a stable balance of payments.
Breaking down the numbers, the foreign exchange reserves held by the SBP fell by $70 million to reach $7.779 billion by the week ending September 1, 2023, down from $7.849 billion a week earlier. The central bank plays a critical role in managing Pakistan’s foreign exchange reserves and ensuring the stability of the country’s currency.
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On a somewhat positive note, the foreign exchange reserves held by commercial banks in Pakistan increased by $25 million to reach $5.347 billion by the week ending September 1, 2023, compared to $5.322 billion in the previous week. This increase in commercial bank reserves could provide some cushioning effect and contribute to maintaining liquidity in the foreign exchange market.
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As Pakistan continues to navigate economic challenges, including concerns about foreign exchange reserves, it remains essential for policymakers and financial authorities to implement strategies that can bolster reserves, attract foreign investment, and address the country’s external debt obligations. These efforts are crucial for ensuring stability in Pakistan’s economic landscape and maintaining investor confidence.
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