Pakistan’s total liquid foreign reserves, which include the reserves held by the State Bank of Pakistan (SBP) and the commercial banks, stood at US$ 13,463.7 million as of July 27, 2023, according to the latest data released by the SBP.
The foreign reserves held by the SBP decreased by US$ 32 million to US$ 8,153.8 million during the week ended on July 27, 2023. The SBP said that the decline was mainly due to debt repayments.
The foreign reserves held by the commercial banks increased slightly by US$ 0.2 million to US$ 5,309.9 million during the same period.
Pakistan’s foreign reserves have been under pressure due to the widening current account deficit, which reached US$ 2.6 billion in June 2023, the highest level in four years2. The country has also been facing challenges in mobilizing external financing amid the COVID-19 pandemic and the uncertainty over the IMF program3.
The SBP has been taking measures to stabilize the foreign exchange market and boost the foreign reserves, such as increasing the policy rate to 22% in July 2023, allowing more flexibility in the exchange rate, and securing bilateral and multilateral loans from various sources.