KARACHI: State Bank of Pakistan’s(SBP) foreign exchange reserves saw a massive corrosion of $956 million, falling to $7.96 billion, downsized by debt payments, central bank data released on Thursday showed.
Total liquid foreign reserves held by the country stood at $13.72 billion. Net foreign reserves held by marketable banks clocked in at $5.76 billion after a reduction of$ 2 million.
“During the week ended on November 4, 2022, SBP’s reserves dropped by$ 956 million to$ million due to external debt servicing,” said the State Bank of Pakistan(SBP) in a statement.
This leaves the country with an import cover for1.16 months only.
“Major external debt disbursements executed during the week include prepayment of government’s marketable loans,” it said.
The SBP further said that refinancing of these loans was in the process which would ameliorate foreign exchange reserves in the coming weeks.
The reserves are pivotal for the country amid the current situation, where it has to also import edibles after the cataclysmic cataracts devastated the agrarian crops and dealt damages estimated at over $30 billion.
Before this week, Finance Minister Ishaq Dar blazoned the Asian structure Investment Bank(AIIB) would extend $500 million asco-financing for a development programme in Pakistan.
“These finances will be entered by the State Bank of Pakistan within November 2022,” Dar twittered, as the cash- strapped nation desperately seeks backing to buffer the impact of cataracts.
These finances would help boost forex reserves held by the central bank.
In October, The Asian Development Bank(ADB) also approved$1.5 billion in backing to help Pakistan give social protection, promote food security, and support employment for its people amid ruinous cataracts and global force chain dislocations.
