KARACHI:
On Thursday, it was reported that the State Bank of Pakistan’s (SBP) foreign exchange reserves had dropped by 6.2% from the previous week. On July 21, the reserves were $8.2 billion, a reduction of $541 million from the $8.73 billion recorded on July 14, 2023. The bank said that payments on foreign loans were to blame for the drop.
Inflows of debt financing from the International Monetary Fund and other friendly countries, such as Saudi Arabia and the United Arab Emirates, caused Pakistan’s foreign exchange reserves nearly double, reaching a nine-month high of $8.73 billion on July 14. The country’s ability to import goods was greatly bolstered by the influx of finances.
