SBP forex reserves fall by $127m to $10.57bn

KARACHI: Pakistan’s central bank’s foreign exchange reserves dropped by $127 million to $10.57 billion during the week ended April 11 due to external debt repayments, the State Bank of Pakistan (SBP) said on Thursday.

The total liquid foreign reserves held by the country also decreased by $91 million to $15.66 billion. However, the reserves of commercial banks increased by $36 million to $5.09 billion.According to the SBP, Pakistan is expected to receive $4 billion to $5 billion in foreign exchange inflows before June 30, which would increase forex reserves to more than $14 billion. On the debt repayment front, the total amount payable for FY25 is $26 billion, of which $16 billion is expected to be rolled over or refinanced. Net repayable debt stands at $10 billion, with $8 billion already paid.

Analysts think that Pakistan is currently in a stronger external position than it has been in the past. Therefore, any delays in the International Monetary Fund’s (IMF) board approval for the next loan tranche of $1 billion under a $7 billion bailout package may not significantly impact the overall macroeconomic situation, even if the delay lasts for a few months.