Foreign exchange reserves held by the State Bank of Pakistan (SBP) decreased a massive $748 million on a weekly basis, falling to a critical $8.24 billion amid expectations that the recently-signed agreement with Chinese banks would help boost the level.

The SBP said total liquid foreign reserves held by the country stood at $14.21 billion as of Jun 17, 2022 with net foreign reserves held by commercial banks clocking in at $5.97 billion.

Critical level: SBP-held foreign exchange reserves fall to $8.99bn, lowest since Nov 2019

"During the week ended on 17-Jun-2022, SBP reserves decreased by $748 million to $8,237.7 million mainly due to external debt repayments," said the SBP on Thursday.

"SBP reserves are expected to increase in coming days on realisation of proceeds of CDB loan."

The current reserves' level does not take into account the loan facility from the Chinese consortium.

Finance Minister Miftah Ismail's said that the Chinese consortium of banks on Tuesday signed an RMB 15 billion ($2.3 billion) loan facility agreement.

The minister, in a tweet, said the inflow was expected within a couple of days. “We thank the Chinese government for facilitating this transaction,” he added.