Pakistan’s diminishing foreign exchange reserves rises up, with the arrival of much needed support in time, and reached to the level of USD 17 billion. The country’s total liquid forex reserves increased by $1.35 billion during the last week of July 2018. The State Bank of Pakistan has not revealed the source of these inflows, however, its spokesman has announced about the increase in foreign exchange reserves.
Pakistan received around $2 billion dollars from China as loan in the last week of July, 2018. SBP’s foreign exchange reserves have now reached to $ 10.35 billion from $ 9.01 billion; an increase of around $ 1.35billion due to official inflows. Reserves held by Commercial banks show an increase of around $ 12 million, these are now at $ 6.73 billion.
The foreign exchange reserves of Pakistan had touched the topmost level of $ 24.461 billion in October, 2016, on account of receiving of $1 billion dollar from ‘Sukuk’ bonds. However, these levels could not be sustained due to higher current account gap, lower inflows and high external debt servicing. During the last fiscal year, several expected forex inflows did not mature causing shortage. For meeting the external debt obligations, the central bank offered its own reserves. In a recent report, SBP has also pointed out that these external susceptibilities and higher fiscal deficit is also preventing to achieve GDP growth target of 6.2 percent for the fiscal year 2019.