Pakistan’s foreign exchange reserves drop to $13.12 bn

Pakistan's foreign exchange reserves have risen to $13.12 billion.

According to SBP data, the country's foreign reserves fell by $44 million to $13.12 billion during the week ended September 1, 2023. The SBP's reserves fell by $70 million to $7.77 billion.

Commercial banks' net foreign reserves, on the other hand, fell by $25.6 million to $5.34 billion.

The State Bank of Pakistan's (SBP) foreign exchange reserves fell to $7.84 billion on August 31, a $81 million loss.

Meanwhile, the country's total liquid foreign reserves stood at $13.17 billion, a $77.4 million decline. Commercial banks' net reserves totaled $5.32 billion, a $3.9 million decrease.

It is worth noting that the State Bank of Pakistan (SBP) decided to implement structural reforms' in the Exchange Companies sector in order to "bring transparency and competitiveness" to the sector.

According to a statement issued by the central bank today, the reforms were implemented to improve public services while also increasing openness and competitiveness in the exchange businesses sector.

"This is expected to strengthen governance, internal controls, and compliance culture in the sector," according to the state bank.

Leading banks actively engaged in foreign exchange trading will establish totally owned "exchange companies to cater to the legitimate foreign exchange needs of the general public" as part of these reforms.