The foreign exchange reserves held by the State Bank of Pakistan (SBP) decreased by $219.8 million or 2.85% week-on-week (WoW) to $7.49 billion during the week ending on October 20, 2023, as reported by the central bank. This decline in the State Bank of Pakistan’s reserves was primarily due to debt repayments.
On the other hand, the country’s total reserves, including both SBP and commercial banks, fell by $257.3 million or 1.99% WoW to $12.66 billion. Commercial banks’ reserves also decreased by $37.5 million or 0.72% WoW to $5.16 billion.
It’s worth noting that Pakistan’s total liquid foreign reserves received a significant boost after signing the Staff Level Agreement (SLA) with the International Monetary Fund (IMF). This boost included a $1.2 billion immediate disbursement from the IMF, a $2 billion deposit from Saudi Arabia, and an additional $1 billion deposit from the United Arab Emirates (UAE).
As a result, in the current fiscal year, total liquid foreign reserves have increased by $3.5 billion or 38.16%. However, it appears that fresh inflows have slowed down since the initial boost from the IMF and Arab countries, with total reserves gradually depleting almost every week.
In the current calendar year, there has still been an increase of $1.81 billion or 16.69% in foreign reserves.
Army Chief General Asim Munir Stresses Safety and Security of Pakistanis
Meanwhile, Chief of Army Staff General Asim Munir has emphasized the importance of the safety and security of Pakistanis, stating that it cannot be compromised as the deadline for the eviction of illegal refugees in the country approaches.
In a press release shared by Inter-Services Public Relations, General Munir said, “Safety and security of each Pakistani is of paramount importance which cannot be allowed to be compromised at any cost.” His comments were made in the context of repatriation and deportation of illegal foreigners, with Pakistan setting a November 1 deadline for their removal.
Caretaker Interior Minister Sarfraz Bugti announced that the government has established “holding centers,” which are temporary camps, to accommodate any illegal refugees who remain in the country after the deadline.
