Pakistan’s central bank says its foreign exchange reserves have fallen to $6.7bn, its lowest level in nearly four years as the country battles an economic crisis.
Thursday’s announcement by the State Bank of Pakistan (SBP) came as the country is in dire need of foreign aid to reduce its current account deficit as well as ensure enough reserves to pay its debt obligations for the next financial year. The bank’s data show forex reserves have declined by $784m since late November, with the commercial banks holding another $5.8bn.
The last time forex reserves fell below $7bn was in January 2019 when they stood at $6.6bn.
In an interview on Thursday, SBP governor Jameel Ahmad said Pakistan’s economic crisis was mainly caused by this year’s catastrophic floods, the continuing Ukraine war and a rise in food prices globally.
Ahmad said Pakistan last week made a $1bn payment against its maturing bonds and other external debt repayments, which resulted in the depletion of foreign reserves.