KARACHI: The foreign exchange reserves held by the country decreased to $24.27 billion during the week ended on December 24, 2021 as compared to $24.63 billion in the preceding week, showing a decline of 1.46 percent on a week-on-week basis.
According to the weekly data released by the State Bank of Pakistan (SBP) on Thursday, the reserves held by the central bank during the week decreased by $298 million to $17.855 billion. The central bank did not provide a reason for the week-on-week decline in reserves. Last week, the SBP-held foreign exchange reserves were down by $415 million due to external debt repayment.
Likewise, the reserves of commercial banks dropped by 1.08 percent on a week-on-week basis to $6.41 billion from $6.48 billion in the preceding week.
Pakistan has been looking to build its foreign currency reserves on the back of loans, remittances, and higher exports. However, foreign direct investment continues to be an area of concern for policymakers. The reserves level is also critical for Pakistan to build an import cover with the bill crossing $6 billion each month, putting pressure on the currency that fell to its weakest level against the US dollar this month. – TLTP