Foreign exchange reserves held by the State Bank of Pakistan (SBP) fell another $784 million to a precarious level of $6.715 billion as of Dec 2, 2022, data released by the central bank showed on Thursday. This is the lowest level of SBP-held reserves since January 2019.

Total liquid foreign reserves held by the country stood at $12.582 billion. Net foreign reserves held by commercial banks clocked in at $5.867 million.

"During the week ended on December 2, 2022, SBP reserves decreased by $784 million to US$ 6,714.9 million," said the SBP.

SBP-held foreign exchange reserves fall $327mn, stand at $7.5bn

"This decline is on account of the payment of US$ 1,000 million against maturing Pakistan International Sukuk and some other external debt repayments. Some of the debt repayments were offset by inflows, mainly US$ 500 million received from Asian Infrastructure Investment Bank (AIIB)."

On November 29, Pakistan received $500 million from the Asian Infrastructure Investment Bank (AIIB), the Ministry of Finance stated.

However, the development did not reflect in SBP’s data back then.

Falling reserves have increased worries over Pakistan's ability to meet debt obligations, and increased perceived default risks, especially at a time the country is in the midst of an economic crisis and recovering from devastating floods that killed over 1,700 people.

The low level has also prompted the SBP to take several administrative measures to control the outflow of dollars, and tame rupee's depreciation against the US dollar.

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