SBP forex reserves fall to 4.5 billion after debt payments

According to sources, the State Bank of Pakistan's (SBP) foreign exchange reserves continued to drop, falling by $1.2 billion to reach $4.5 billion.

https://twitter.com/StateBank_Pak/status/1610992704263172102

After the fresh loan repayments to the UAE, sources claim that the SBP's foreign exchange reserves have decreased to $4.5 billion.

On Friday, Pakistan reportedly returned $600 million to the Emirates NBD Bank and $415 million to the DIB. The currency reserves have decreased to $4.5 billion after the most recent loan repayments, which is only enough, according to them, to finance imports for 25 days.

The central bank announced on Thursday that as of December 30, 2022, foreign reserves had decreased to $5.6 billion.

The State Bank of Pakistan reported that the amount of the nation's total liquid foreign reserves was $11.43 billion. “During the week ended on December 30, 2022, SBP-held foreign exchange reserves decreased by $245 million to $5,576.5 million due to external debt repayment,” said the central bank.

It is important to note that Pakistan anticipates a $3 billion cash infusion from Saudi Arabia as well as a refinance of $700 million from the Chinese Development Bank. Dar predicted that it would occur "in days."

The country will effectively navigate out of the current economic scenario, according to the finance minister, who has consistently ruled out any fear of default.