The country's total liquid foreign exchange reserves declined by $106 million during the first month of this fiscal year, mainlyy due to foreign debt payment The country's total liquid foreign exchange reserves crossed $23 billion mark at the end of last fiscal year; however the level could not be sustained due to foreign debt payments.
According to State Bank of Pakistan, the country's total liquid foreign exchange reserves stood at $22.978 billion as on July 29, 2016 compared to $23.084 billion as on July 1, 2016. During the period under review, the SBP's reserves fell compared to banks. The SBP's foreign exchange reserves posted a decline of $68.4 million to stand at $18.06 billion during the first month of FY16. Reserves held by banks decreased by $38 million to $4.918 billion down from $4.956 billion.
During July 2016, the SBP made payments of $146 million on account of external debt servicing. Some $63 million were paid in the second week and another amount of $83 million in third week of July 2016. Meanwhile, during last week that ended on July 29, the country's total liquid forex reserves declined by $18 million. During the week, the SBP's reserves posted an increase of $24 million, while reserves held by banks declined by $42 million.