Pakistan's forex reserves fall to four-year low

Pakistan’s central bank says its foreign exchange reserves have fallen to $6.7bn, its lowest level in nearly four years as the country battles an economic crisis. According to the State Bank of Pakistan (SBP), the forex reserves have declined by USD 784 million in the week ended on December 2. The central bank data showed the foreign exchange reserves were last recorded at this level during the week that ended on January 18, 2019 at USD 6.64 billion. Pakistan has to pay nearly $33bn to its foreign lenders in the coming financial year.

Total liquid foreign #reserves held by the country stood at US$ 12.58 billion as of December 02, 2022. For details: https://t.co/WpSgomnKT3 pic.twitter.com/LylLFmoBHb

— SBP (@StateBank_Pak) December 9, 2022

The last time forex reserves fell below $7bn was in January 2019 when they stood at $6.6bn. SBP governor Jameel Ahmad said Pakistan’s economic crisis was mainly caused by this year’s catostrophic floods,the continuing Ukraine war and a rise in food prices globally. As oer media reports, Ahmad said Pakistan last week made a $1bn payment against its maturing bonds and other external debt repayments, which resulted in the depletion of foreign reserves.