Last Updated on: 7th July 2023, 10:19 pm
Pakistan’s foreign exchange reserves saw a sharp drop of $778 million, or 3.30 percent) in the week ended April 30, 2021, data released by the State Bank of Pakistan (SBP) on Thursday showed.
According to the central bank, this is due to the repayment of foreign loans. The government paid off a $1 billion business loan that caused the shock. The overall effect has been partially offset by inflows of less than a billion.
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During the week in question, the country’s total liquid currency reserves fell from $23.52 billion the week before to $22.742 billion. The reserves held by the central bank decreased by $830 million to $15,597 billion.
However, total reserves other than SBP increased from $7.092 billion the previous week to $7.144 billion.
The flow of foreign exchange through Roshan’s Digital Accounts (RDA) has exceeded $1 billion since it was recently launched in September.
These inflows and remittances are expected to reduce the impact of the overall expected outflow as debt settlement.
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The reinvestment facility provided by the United Arab Emirates and now Japan also helped stabilize foreign exchange reserves. Pakistan also received a profit of $2.5 billion on issuing Eurobonds.
In March 2021, Pakistan received nearly $500 million from the International Monetary Fund after the loan program resumed.
As a result, the checking account is currently in a stable position with a surplus of $959 million in the July to March period.
