Pakistan FX reserves sink to three weeks' worth of import cover

The drop was due to external debt repayments, the State Bank of Pakistan says

Reuters
Published : 12 Jan 2023, 04:24 PM
Updated : 12 Jan 2023, 04:24 PM

Pakistan's foreign exchange reserves held by the central bank dropped $1.2 billion to $4.3 billion as of Jan 6, the bank said on Thursday, leaving the cash-strapped country with barely three weeks' worth of import cover.

The drop was due to external debt repayments, the State Bank of Pakistan (SBP) said in a statement.

Net foreign exchange reserves held by commercial banks stood at $5.8 billion, and total liquid reserves at $10.1 billion, the bank added.

Despite recent compression measures by the government, Pakistan's import bill for goods was $5.1 billion per month in both November and December, according to the country's statistics bureau. Its main imports are critical energy-related fuels.

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