ISLAMABAD (Ahmed Mughal): The Pakistan’s official forex reserves decreased by $724 million during last week due to heavy debt repayments.
According to the State Bank of Pakistan, the official forex, reserves held by the Central Bank, decreased by $724 million during last week ended 27 Sept 2019. The official forex reserves narrowed by 8.55 percent in one week.
The huge reduction in official forex reserves due to heavy Govt debt repayments which made during the last week.
The official external debt has been raised to $67 billion up to June 2019. In this foreign debt, the IMF loan and $7 billion support from China, UAE and Saudi Arabia is not included.
The official reserves held by the SBP, now remains equal of the country’s import bill of two months. Contrary of that, Pakistan must would have forex reserves equal of three months import bill.
The country’s import bill recorded at $7.677 billion during first two months of the current fiscal year.
According to the statement of the SBP, the forex reserves held by commercial banks reached to $7.262 billion up to 27 Sept 2019.
The county’s total forex reserves reached to $15 billion due to huge decreased in official foreign reserves, the SBP said.
Pakistan’s Govt has set target of current account deficit $6.7 billion (2.6 percent of GDP) for the current fiscal year.
According to the IMF’s document, Pakistan has to build official forex reserves to $11.2 billion up to June 2020. Pakistan Govt had secured IMF loan program with different conditions of prior and during of the program.