Pakistan’s foreign reserves decline amid debt repayments

Pakistan’s foreign exchange reserves held by the State Bank of Pakistan (SBP) declined by $367 million during the week ending April 18, bringing the total to $10.21 billion, according to official data released Thursday. The drop was primarily attributed to external debt repayments.

Net foreign reserves held by commercial banks stood at $5.23 billion, while the country’s total liquid foreign reserves amounted to $15.4 billion.

Despite the decline, sentiment in the foreign exchange market remained steady throughout the year, with the rupee-dollar exchange rate exhibiting stability, according to the SBP’s Financial Stability Review 2024.

The report cited several factors contributing to this resilience, including an improved current account position, successful arrangements with the International Monetary Fund (IMF), reforms in the foreign exchange market, administrative measures, and a buildup of reserves.

Fiscal consolidation efforts remain on track, supporting a positive economic outlook. The Business Confidence Index (BCI) has remained in the positive zone since August 2024, reflecting sustained optimism among businesses.