KARACHI: The foreign exchange reserves of the State Bank of Pakistan (SBP) declined $276 million to $11.448 billion during the week ended on Jan 17 due to external debt repayments, reported the central bank on Thursday.
Finance Minister Mohammad Aurangzeb said in Davos that Pakistan had agreed terms for a $1bn loan with two Middle Eastern banks at 6 to 7pc interest rate.
The country is in a problematic situation regarding debt servicing despite the rollover of loans by Saudi Arabia and the UAE. The country’s economic team desperately struggles to secure a debt rollover from China.
Mr Aurangzeb said it would be a short-term loan from the two Middle Eastern banks. However, borrowing at commercial rates would further bring the country’s external account under pressure.
Besides, the profit repatriation by multinationals surged 114pc to $1.215bn during the first six months of the current fiscal FY25 against $568m in the same period of last year.
The country’s overall reserves fell by $261m to $16.189bn, including the commercial bank’s holdings, which rose by $14m to $4.70bn during the week under review.
Published in Dawn, January 24th, 2025