Foreign exchange reserves of Pakistan declined by $ 956 million to $ 7.96 billion, a fall of 10.7% on November 4, against the $ 8,912.9 million on October 28 w.o.w. State Bank of Pakistan stated that the reason is external debt servicing which has a significant share of the commercial loans of the government of Pakistan.
The total liquid foreign currency reserves of Pakistan recorded at $13,721 million, excluding reserves of the State Bank of Pakistan, including net reserves of the banks are $5,764 million. In August 2021, Pakistan’s highest figure for foreign exchange reserves was $20.15 billion after receiving an amount of $ 2.751 billion under Special Drawing Rights from IMF.
Pakistan has faced a loss of $30 billion due to floods and imported agriculture products in the week, which outflowed the foreign exchange reserves. Refinancing of the loan (More loans at a low-interest rate) is in the process and will increase the foreign exchange reserves soon in the coming weeks.
Finance Minister Ishaq Dar announced that Pakistan would receive $500 million for the development program from Asian Infrastructure Investment Bank (AIIB). The Asian Development Bank (ADB) will provide $1.5 billion in October for food security and social protection, to cope with the loss of floods, and for employment generation to improve the global supply chain.
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