According to the most recent data issued by the State Bank of Pakistan (SBP), repayments made to Chinese and other international commercial banks were a major factor in the sharp drop of $2.66 billion in Pakistan’s foreign exchange reserves in only one week.
According to the report, the country’s continued battle with foreign debt commitments and balance of payment constraints was highlighted by the SBP’s dollar reserves, which dropped precipitously from $11.72 billion to $9.65 billion over the week.
Commercial bank deposits increased by a small $50 million to $5.33 billion, despite the sharp decline in central bank reserves. Pakistan now has $14.40 billion in foreign exchange reserves overall.
