SBP Reserves Likely to Witness Huge Decline Due to Bond Repayment

The foreign exchange reserves held by the State Bank of Pakistan (SBP) remained stable on a weekly basis according to data issued by the central bank on Thursday. On April 5, the foreign currency reserves held by the SBP were recorded at $8.040 billion, down $0.1 million compared to March 29 level. Overall liquid foreign currency reserves held by the country, including net reserves held by banks other than the SBP, stood at $13.442 billion, up $62.8 million over the previous week. The net reserves held by banks stood at $5.401 billion, registering an increase of $62.9 million during the week. It is pertinent to mention here that the repayment of $1 billion Pakistan’s International Bond on April 12, 2024 did not reflect in this week’s data. The current reserves held by the central bank are likely around the $7 billion mark. However, Pakistan expects a $1.1 billion inflow from the International Monetary Fund (IMF) in the coming weeks that will once again push the reserves close to the $8 billion level.