According to data released by the State Bank of Pakistan (SBP) on Thursday, the central bank’s foreign exchange reserves fell by 2.7% week on week to $4.19 billion.

The SBP’s foreign currency reserves were $4,193 million on May 19, 2023, a $119 million decrease from $4,311.9 million on May 12.

The decrease in reserves was attributed by the central bank to external debt repayments.

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Overall, the country’s liquid foreign currency reserves, including net reserves held by banks other than the SBP, stood at $9,731.1 million. The total amount of net reserves held by banks was $5,538.1 million.

According to Fahad Rauf, Head of Research at Ismail Iqbal Securities, any significant improvement in Pakistan’s foreign currency reserves is contingent on the revival of the International Monetary Fund’s (IMF) loan programme and the inflow of new financing from other multilateral and bilateral creditors.

“They (FX reserves) are projected to rise to around $7-8 billion by the end of the current fiscal year on June 30, 2023,” he explained.