SBP’s Foreign Reserves Dip for Third Consecutive Week
Pakistan’s economic indicators faced another setback this week as the State Bank’s foreign exchange reserves continued their downward trend for the third consecutive week.
According to data released by the central bank, the country’s foreign currency reserves held by the SBP dropped once again, signaling persistent pressure on the external front. The reserves fell by $72 million in the past week, bringing the total down to approximately $14.23 billion.
This ongoing decline in central bank holdings is raising eyebrows among economists and market watchers, as consistent reserve depletion can impact Pakistan’s ability to stabilize the rupee, service external debt, and maintain a healthy balance of payments.
The total liquid foreign reserves, which include the holdings of commercial banks, also saw a decrease. Collectively, Pakistan’s overall reserves dropped by $111 million, settling around $19.49 billion. The reserves maintained by commercial banks alone fell by $39 million, reflecting the broader trend of outflows across the financial system.
Experts suggest that the fall could be linked to debt repayments, rising import costs, and a lack of strong foreign inflows during the period. With the global economic climate still volatile and investor confidence remaining shaky, Pakistan may need to secure new inflows or funding lines to stabilize its external accounts.
Despite recent efforts by policymakers to secure international financing and rein in the current account deficit, the repeated weekly drop in reserves is a cause for concern. A strong and consistent increase in reserves is essential to support economic recovery, attract foreign investment, and build credibility with global lenders.
As Pakistan moves forward, all eyes will be on future reserve updates, policy decisions from the finance ministry, and any developments related to ongoing financial assistance programs. The coming weeks will be crucial in determining whether the country can regain upward momentum or face further external pressure.
