Pak: Foreign currency reserves held by SBP fall USD 87Mn to USD 7.8Bn
Aug 26, 2022
Karachi [Pakistan], August 26 : The foreign currency reserves held by the State Bank of Pakistan (SBP) were recorded at USD 7.81 billion, according to data released by the SBP on Thursday as they witnessed a fall of USD 87 million.
Sharing a break-up of the foreign reserves position, the central bank stated that the foreign currency reserves held by the SBP were recorded at USD 7.81 billion, and were down by USD 87 million compared to USD 7.89 on August 19.
"During the week ended on August 19, 2022, SBP's reserves decreased by USD 87 million to USD 7,809.9 million," the SBP said in a statement.
The liquid foreign reserves held by Pakistan stood at USD 13.52 billion, said the SBP on Thursday, adding that the net foreign reserves held by commercial banks amounted to USD 5.71 billion.
"The sharp decline in reserves due to external debt and other payments," said SBP.
Pakistan is grappling with a crippling economic crisis and the deepening political turmoil is spawning doubts about the government's ability to make tough decisions going forward and tackle the longstanding structural issues of the economy responsible for the recurring balance-of-payments crisis.
Moreover, Pakistan's economy is slowing to around 3.5 per cent due to weakening economic conditions and the average inflation rate peaking to nearly 20 per cent by the end of the current fiscal year, according to the International Monetary Fund (IMF).
The IMF has shaved Pakistan's previous year's economic growth forecast by 1 per cent to 3.5 per cent.
Meanwhile, the State Bank of Pakistan in this week's monetary policy statement had said that the floods caused by unusually heavy and prolonged monsoon rains created downside risks for agricultural production, especially cotton and seasonal crops, and could weigh on growth this year.
Amid this, the Pakistani citizens are taking their financial woes online and criticizing the country's Prime Minister Shehbaz Sharif and Pakistan Muslim League Nawaz (PML-N) top leader Maryam Nawaz for doing nothing for the relief of the masses.
Recently, a video of a Pakistani woman surfaced, describing the skyrocketing prices of medicines, groceries and electricity in the country, especially in Karachi city and slamming Prime Minister Shehbaz Sharif and PML-N leader Maryam Nawaz. The video was shared by Pakistani journalist Hamid Mir in which a woman identified as Rabia from Karachi could be seen slamming the government after skyrocketing inflation. The woman asks the government whether she should end her children's lives by not feeding them anymore, The News International reported.
