Forex reserves down by $11m

The country’s total foreign currency reserves fell by 11 million dollars last week.

According to the weekly exchange reserves report released on Thursday by the State Bank of Pakistan (SBP), the total foreign exchange reserves held by the country were $16.150 billion as of May 20, 2022, compared with $16.161 billion as of May 13, 2022.

During the week under review, SBP reserves fell by $75 million to $10.089 billion as a result of the repayment of external debt. However, commercial banks’ net foreign exchange reserves increased by $63 million to $6.061 billion.

Currently, the country is facing a serious cash crisis due to the depletion of foreign exchange reserves. The government is working to build foreign exchange reserves and, recently, Saudi Arabia announced the renewal of the $3 billion deposits with Pakistan.

In addition, the Federal Government is negotiating with the IMF the release of USD 900 million from the Extended Facility of Funds for Pakistan, However, the Fund related the release of the tranche to the abolition of the subsidy on petroleum products. The government is also making efforts to get $2.5 billion in deposits from China for improving its economic condition.