Foreign exchange reserves held by the State Bank of Pakistan (SBP) decreased a massive $463 million on a weekly basis, clocking in at $15.73 billion, showed data released on Thursday.

The reserves decreased due to external debt and other payments, stated the central bank.

Last week, SBP-held foreign exchange reserves were down a massive $846 million.

Meanwhile, total liquid foreign reserves held by the country stood at $22.09 billion on January 28, 2022, stated the SBP. Net foreign reserves held by commercial banks stood at $6.36 billion.

SBP's foreign exchange reserves fall a massive $846mn, drop to $16.2bn

Pakistan has been looking to build its foreign currency reserves on the back of loans, remittances, and higher exports. However, foreign direct investment continues to be an area of concern for policymakers.

On Wednesday, the International Monetary Fund’s (IMF) Executive Board gave its stamp of approval on Pakistan’s sixth review of the Extended Fund Facility (EFF), a development that paves way for the next tranche of the $6-billion programme.

Completion of the review has now made available SDR 750 million (about $1,059 million), taking total disbursements under the EFF to about $3,027 million.

"IMF board approval is a stamp of confidence on the government policies by the IMF," Samiullah Tariq, Head of Research and Development at Pak-Kuwait Investment Company, told Business Recorder. "This would unlock funding from numerous sources to refinance Pakistan's debt as well as build the country's import cover."