KARACHI: Pakistan’s foreign exchange reserves witnessed a steep decline last week as heavy external debt repayments eroded the country’s dollar holdings, according to the latest data released by the State Bank of Pakistan (SBP).
The SBP reported that official reserves fell by $1.245 billion during the week ending July 10, marking a 6.7 percent drop in just seven days. With this adjustment, the country’s total foreign exchange reserves slipped from $24 billion to $22.7 billion.
Central bank reserves, which stood at $18.5 billion previously, dropped to $17.2 billion after the debt servicing. Meanwhile, deposits held by commercial banks also recorded a fall of $68 million, leaving them with $5.45 billion in foreign currency deposits.
The sharp depletion underscores the mounting pressure on Pakistan’s external account, where every dollar carries critical importance amid ongoing fiscal challenges. Analysts note that while debt repayments are routine, the scale of the weekly decline highlights the fragility of the reserve position and the urgency of securing inflows to stabilize the balance.
