Foreign exchange reserves held by the State Bank of Pakistan (SBP) dipped $176 million, clocking in at $8.62 billion as of September 9, 2022, according to data released on Thursday.

Total liquid foreign reserves held by the country stood at $14.32 billion, said the SBP on Thursday. Net foreign reserves held by commercial banks amounted to $5.7 billion.

“During the week ended on September 9, 2022, SBP’s reserves decreased by $176 million to $8,624 million due to external debt and other payments,” said the SBP.

SBP-held foreign exchange reserves increase to $8.8bn after inflow from IMF

Last week, SBP's reserves increased as the central bank received the $1.2-billion tranche from the International Monetary Fund (IMF).

The reserves’ position is critical for Pakistan which has been desperately seeking dollar inflows to meet its balance-of-payments needs.

A low level of reserves has caused severe pressure on its currency market with the rupee witnessing its worst monthly performance in July in over 50 years.

The rupee gained some ground as Pakistan met all prior conditions of the IMF, a development that helped it secure $1.17 billion of inflow under the Extended Fund Facility (EFF).

However, lately, the local currency has come under severe pressure yet again, hovering near its all-time low as funding expected from friendly countries has not materialised yet.

The Pakistani rupee depreciated for the 10th consecutive session on Thursday and closed at 235.88.