SBP Reserves Declines by $54 million to $8.216bn

 KARACHI: The State Bank of Pakistan (SBP) said on Thursday that during the week ending on January 26, its foreign exchange reserves decreased by $54 million to $8.216 billion.

Also Read: Pakistan’s Current Account Posts Surplus of $397ml in December 2023

Nonetheless, the SBP held onto the reserves totalling over $8 billion. The country's reserves have proven vital since they sustain the stability of the trading system and the exchange rate.

In the first seven months of the current fiscal year, the trade deficit shrank and the current account deficit remained within reasonable bounds. For the economic managers, paying off debt servicing is still a significant challenge. Media reports indicate that China has withheld $2 billion that was scheduled to be paid in March this year but no official statement has been issued in this regard as yet.

It is important to mention here that the country's total reserves right now stand at $13.262bn which also includes $5.046bn held by the commercial banks.