After week's respite, foreign exchange reserves decline once again

• Overall liquid foreign currency reserves stand at $13,521.6m.
• Net reserves held by banks amount to $5,711.7m.
• SBP does not cite any reason for the decline.

KARACHI: After a week’s respite, the country’s foreign exchange reserves held by the State Bank of Pakistan (SBP) once again declined by 1.1%.

On August 19, the foreign currency reserves held by the SBP were recorded at $7,809.9 million, down $87 million compared with $7,897.3 on August 12, data released by SBP showed on Thursday.

Overall liquid foreign currency reserves held by the country, including net reserves held by banks other than the SBP, stood at $13,521.6 million.

Net reserves held by banks amounted to $5,711.7 million. The central bank did not cite any reason for the decline.

With the current foreign exchange reserves position, Pakistan has an import cover of fewer than 1.12 months.

The reserve position is expected to strengthen after Pakistan receives funds form bilateral countries, including Saudi Arabia, Qatar. Moreover, the International Monetary Fund (IMF) is expected to revive the stalled programme which will also improve the reserves position.