Pakistan's total liquid foreign reserves fall to $14.99 billion: SBP
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The country's total liquid foreign reserves stood at $14.992 billion on October 4, a press release issued by the State Bank of Pakistan on Thursday said.
During the week ending on September 27, the country’s total reserves had been reported at $15.003bn.
The central bank's own reserves witnessed an increase of $16 million to reach $7.76bn during the week ending October 4, the handout added.
According to a breakup of the foreign reserves position provided by SBP:
- Foreign reserves held by the State Bank of Pakistan — $7.757bn
- Net foreign reserves held by commercial banks — $7.235bn
- Total liquid foreign reserves — $14.992bn
Also read: SBP discovers stabilisation may slow growth
Remittances decline
The central bank also reported a decline in the remittances sent by overseas Pakistanis in the first three months of FY 2019-20.
"Overseas Pakistani workers remitted $5,478.11 million in the first three months (July to September) of FY20, compared to $5,557.61m received during the same period in the preceding year," said the SBP statement.
The central bank observed, however, that during September, the remittances amounted to $1,747.95m, 3.4 per cent higher than August and 17.6 per cent greater than the amount received in September 2018.
The inflows per country in September show that from Saudi Arabia remittances amounted to $420.88m as compared to $360.16m in September 2018 and from UAE the figures stood at $363.34m as compared to $308.13m.
From the US $281.91m were received as compared to $240.49m, from UK $264.89m as compared to $216.75m and from GCC countries (including Bahrain, Kuwait, Qatar and Oman) $162.77m as compared to $134.49m.
Remittances from the EU this September stood at $53.20m as compared to $41.14m last September.
"Remittances received from Malaysia, Norway, Switzerland, Australia, Canada, Japan and other countries during September 2019 amounted to $200.95m together as against $185.31m received in September 2018," the statement added.
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Comments (56) Closed
Oct 10, 2019 10:16pm
This number is not impressive. I thought Pakistan's foreign reserve is much higher.
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Oct 10, 2019 10:22pm
provide incentives to people who send money to Pakistan, fast transfer, better rates, better service, all is non existent, How can you improve when you don't want to improve, Basically no one cares in Pakistan how to increase the foreign exchange. Foreign investment is not coming anytime soon, so you have to think of out of the box solutions. Exports are not increasing due to lack of interest and structure plus increase in Smuggling.
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Oct 10, 2019 10:23pm
$15 billion is a very good number it covers more than 3 months imports.
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Oct 10, 2019 10:30pm
Foreign reserve's tally should match an year's import bill of Pakistan, at least.
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Oct 10, 2019 10:32pm
And then Pakistanis like to be compared with India which holds 433.5bn dollars as reserves which is up from 428.5bn dollar previous week. Indian reserves are increasing 5bn dollar a week.
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Oct 10, 2019 10:34pm
$7 Billion Foregin Reserve and $115 Billion foregin Debt, Naya Pakistan going Right Direction
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Oct 10, 2019 10:46pm
Indias increased to $430billion a few days ago.
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Oct 10, 2019 10:47pm
How much from that 15billion accounts to remittances from oversee Pakistan. I guess atleast 10 percent ?
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Oct 10, 2019 10:47pm
Foreign Exchange Reserve Statistics - 2019
Rank 7 - Indian - $433.6 Billion
Rank 43 - Nigeria - $44.94 Billion
Rank 51- Bangladesh - $32.5 Billion
Rank 53 - Kazakhstan - $30 Billion
Rank 84 - Pakistan - $14Billion
Rank 135 Rawanda - $1Billion
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Oct 10, 2019 10:57pm
@Dabang, $7 Billion Foregin Reserve and $115 Billion foregin Debt, Naya Pakistan going Right Direction
K word is the only solution to hide all these issues
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Oct 10, 2019 11:11pm
Naya Pakistan.
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Oct 10, 2019 11:13pm
And Walmart bought Flipkart for $20bn . Come join with India.
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Oct 10, 2019 11:15pm
@Justice, Should be around $500 billion (in our imagination) as India's reserves are $433 billion. How can our reserves be less?
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Oct 10, 2019 11:18pm
does Pakistan have any economist who can draw balance sheet on CPEC. i am sure is eating out some money.
LOAN interest compae to what you get (most Chinese companies gets tax benefits)
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Oct 10, 2019 11:21pm
We can not count reserves held by commercial banks, only those held by SBP. That is how it is done througout the world.
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Oct 10, 2019 11:25pm
Its ok can manage. No problem.
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Oct 10, 2019 11:50pm
@Ash Man , “$15 billion is a very good number it covers more than 3 months imports.”
Amount with SBP is only $7.7 billion which is less than 2 months of imports.
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Oct 10, 2019 11:51pm
@Junaid Fazil, $434 billion
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Oct 11, 2019 12:04am
In contrast, Indian foreign reserves are around $430 billion.
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Oct 11, 2019 12:06am
All the trips abroad by IK? Somebody has to pay for them
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Oct 11, 2019 12:12am
In your schools teach kids to draw, research, discover, innovate and think not memorise. Value, mathematics, science, innovation and creativity and you will generate a good workforce for these companies. Have schools with metal work and wood work machines and tools and science labs with good teachers.
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Oct 11, 2019 12:23am
@asharbhai, or create products that can be exported to bring in foreign currency?
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Oct 11, 2019 12:37am
It's good.
No money no tension.
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Oct 11, 2019 12:42am
@Mark Smith, Very well pointed.
You touched the root cause
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Oct 11, 2019 01:00am
How much of this $15 billion will be used for debt servicing?
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Oct 11, 2019 01:10am
Actual burn rate of reserves to service debt interest is at 1.2B per mo ! accelerating 15% y2y
Real Exports are falling. And cost to import up 40% y2y Actual (realized) Economic output down 15-18% y2y
Without borrowing default would already be here
And current borrowing will make the inevitable free-fall much much harder. doom looms
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Oct 11, 2019 01:18am
Cash in foreign reserves not an indicator of GDP. Don't worry we have enough Gold!
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Oct 11, 2019 01:26am
On top of all of this, it is a precarious security situation for the country. I think people should be made aware of the dangerous situation ahead.
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Oct 11, 2019 01:43am
This is another Ambani brothers story in making .. its anybody’s guess who is Mukesh and Anil here
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Oct 11, 2019 02:22am
Foreign remittances every year are more than the total foreign reserves.
Pakistan economy is totally dependent on poor immigrants who work in in humane conditions in the Middle East.
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Oct 11, 2019 02:43am
GDP numbers and % growth are just numbers in the air.
What matters is quality of life.
If India us so rich.
Why are there so many poor people?
People committing suicide because they can't pay back loans.
Please Mr khan, that is not we want.
We don't want to be slaves of foreign money and forever paying the back.
We don't want to be their slaves.
Create a manufacturing economy like China
It a debt driven economy like the West.
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Oct 11, 2019 02:53am
This is difficult to understand. I thought the Government has obtained substantial funding from IMF and also China. Where has all that overseas gone, because all of that should have been reflected in the Foreign Reserves. Why is the Government now only talking of remittances from Pakistani overseas workers towards foreign currency reserves? No country in the world can build up its foreign currency reserves solely through remittances of overseas workers. So this is not making any sense. Instead, the Government should be putting in place intensive Export-oriented programmes for industries. That is how foreign reserves are built up (other than of course borrowing from bodies like IMF, but then those funds have to be repaid back with interest).
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Oct 11, 2019 02:55am
Remittances is declining because govt is not serious in overseas investors. They invested in Bahria town paradise and now Bahria is not returning their investment nor giving new locations. Government is aware of corruption but interested to collect Bahria money which is largely overseas Pakistani money.
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Oct 11, 2019 02:59am
@Justice, Why not search Google.
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Oct 11, 2019 03:00am
@asharbhai, Incentives never work. What work is security and return of the money. Pakistan's record on both front is dismal.
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Oct 11, 2019 03:12am
@Junaid Fazil, Yes, $430B are usable reserves.
Actual reserves are closer now to $600B+ & growing at roughly 15-20% y2y
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Oct 11, 2019 03:30am
Why no remittances from US based Pakistanis?
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Oct 11, 2019 03:32am
Pakistani PM should cut his foreign trips and concentrate on the economy. We wish the country the best.
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Oct 11, 2019 03:40am
@Robin, but as a country you guys are morally bankrupt.
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Oct 11, 2019 04:11am
@Junaid Fazil, India's Debt over 1.2 Trillion dollars. Please list the full facts.
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Oct 11, 2019 05:26am
@Alla Bux, read the article! It's given there! Out of 14 billion reserves, 50% is held by SBP and rest by commercial banks!
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Oct 11, 2019 05:48am
How can Pakistan able to matain reserves around USD 15 Billion for very long time ?
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Oct 11, 2019 05:53am
when was the last time Pakistan had $15Billions !! It is very good!
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Oct 11, 2019 07:49am
One third of Bangladesh!
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Oct 11, 2019 07:54am
@Haan Bhai, please do your maths and education before writing ? no wonder Pakistan is in mess.
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Oct 11, 2019 07:57am
PTI promised roses and delivering thorns. Except Kashmir, no other issues are even being looked at.
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Oct 11, 2019 08:09am
@Ajaz, And this world is not for irresponsible humans to breed more irresponsible people like you.
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Oct 11, 2019 08:13am
@Robin, current is 745 billion of India
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Oct 11, 2019 08:16am
In the meantime India's total foreign exchange (Forex) reserves stand at around US$429 billion as on 23 August 2019.
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Oct 11, 2019 09:26am
@Mark Smith, to start with they need to build some schools.
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Oct 11, 2019 09:30am
@Haan Bhai, full facts also mean that you should talk about debt servicing not debt . China , America all have trillion dollar debt at ultra low cost which produces economic growth . Reserves are meant to shore up servicing and short term spending and if needed stimulus . When you have a GDP of 2 trillion growing at 5% the long term debt has no relevance .
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Oct 11, 2019 10:38am
PM Imran Khan should allow dual nationals Pakistanis living abroad to remit money to purchase properties in Pakistan. This will work out as two edge sword.
On one hand the reserves of foreign currencies in State Bank of Pakistan will increase and on other hand hand market of real estate in Pakistan which is stagnant since 2016 will start improving slowly and gradually.
Federal and provincial governments will also start collecting revenues from CVT, Stamp Duties, Registrar Fee, Advance Income Tax etc. etc.
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Oct 11, 2019 11:14am
Remittance from overseas Pakistanis falling as they expect rupee to further devalue
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Oct 11, 2019 11:36am
What are “net foreign reserves held by commercial banks”? Commercial banks don’t keep reserves. They keep deposits as far as I know Pakistan is the only country where these are taken as federal reserves and even then it adds up to a pathetic number.
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Oct 11, 2019 11:42am
@Nusrat, Remittances have fallen too. And so Have exports. A brilliant way to increase both as I have suggested is to reduce further the level of education in Pakistan. Pakistan’s biggest export is uneducated, unskilled labour. There is a great demand around the world for this product for menial jobs and as education and prosperity rises in other countries they lack this. Pakistan on the other hand is abundant in this and can meet this demand. Keep your kids uneducated and unskilled and see you exports/remittances double.
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Oct 11, 2019 11:59am
All I know is that the greatest entertainment show on Earth - Thee Pakistan Economy is getting more and more entertaining with each episode and really living up to its promise of fun and entertainment. My congratulations to the script writers for putting on such a brilliant show with great episode each day.
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