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KARACHI: The SBP Pak reserves took another hit this week, declining by $367 million to settle at $10.205 billion, the central bank reported on Thursday. The drop comes amid ongoing external debt repayments.
According to the State Bank of Pakistan, the country’s total foreign exchange reserves now stand at $15.436 billion, including $5.230 billion held by commercial banks.
The SBP reserves have seen repeated downward pressure due to external financial obligations. The latest decline reflects the persistent strain on Pakistan’s external account.
To put things in perspective, Pakistan’s forex reserves had reached an all-time high of over $20 billion in October 2016. Conversely, they plunged to a historic low of around $3 billion in early 2023, raising alarm over the country’s ability to meet its import and debt obligations.
In a related development, a Reuters report highlighted that Pakistan’s dollar-denominated government bonds dropped significantly on Thursday as geopolitical tensions with India intensified. Data from Tradeweb revealed that bonds maturing in 2036 saw the steepest fall—over 4 cents—trading at 74 cents on the dollar.
The ongoing depletion in SBP Pak reserves, coupled with market reaction to regional tensions, underscores the economic challenges Pakistan continues to face on multiple fronts.
