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SBP Foreign Exchange Reserves Drop by $228 Million Amid External Debt Payments
Pakistan’s foreign exchange reserves fall by $228 million to $11.85 billion as the State Bank announces outflows due to external debt payments. The country still needs $14 billion for FY25 repayments.
ND
by News Desk
2024-12-27
SBP Foreign Exchange Reserves Drop by $228 Million Amid External Debt Payments

The State Bank of Pakistan (SBP) reported a decline of $228 million in its foreign exchange reserves, bringing the total to $11.85 billion for the week ending on December 20. The central bank explained that the drop was primarily due to external debt repayments.

 

Pakistan is facing a significant external debt burden, with a requirement to repay $26.1 billion during the current fiscal year. While the government has made partial payments and rolled over a substantial portion of the debt for an additional year, the country still needs around $14 billion to meet its external repayment obligations for fiscal year 2025.

 

As official foreign inflows remain limited, the SBP has been purchasing dollars from the banking market to bolster its reserves. Despite these challenges, the central bank had seen consistent increases in its foreign exchange reserves over the past several weeks, which had raised hopes that the target of $13 billion in reserves by the end of FY25 could be achieved ahead of schedule.

 

However, the latest data shows a reduction in both the central bank's reserves and the overall foreign exchange reserves in the country. Commercial banks' holdings also decreased, shrinking by $33 million to $4.518 billion. The country's total foreign exchange reserves fell by $261 million, settling at $16.371 billion.

 

Despite the drop in reserves, officials remain optimistic, noting that the ongoing efforts to stabilize the foreign exchange situation and manage debt repayments are key to Pakistan's fiscal strategy. The government is continuing to negotiate external financial support while balancing its foreign debt obligations and attempts to stabilize the local economy.
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SBP

PakistanEconomy

ForeignReserves

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