ISLAMABAD - Pakistan’s foreign exchange reserves have once again fallen to $7.83 billion after repaying $555 million against external debt payments.

“During the week ended on 05-Aug-2022, SBP’s reserves decreased by $555 million to $7,830.3 million due to external debt payments. Debt repayments are expected to moderate during the next three weeks of this month,” said the State Bank of Pakistan on Thursday. It added that in fact, around three-fourth of debt servicing for the month of August was concentrated during the first week. The total liquid foreign reserves held by the country stood at $13.561 billion as of 05-August 2022. Foreign reserves held by the State Bank of Pakistan are $7.830 billion and net foreign reserves held by commercial banks are $5.730 billion. The country’s foreign exchange reserves had fallen to around $8 billion few months before. However, the reserves had increased after inflow of $2.3 billion from China. Pakistan’s foreign exchange reserves would start building after loan tranche approval from the International Monetary Fund. The IMF’s executive board would meet later in current month to consider loan tranche for Pakistan worth of $1.2 billion. The loan approval from the IMF would also pave way for getting loans from multilateral and bilateral sources in the current fiscal year.

Pakistan would receive $6.5 billion from multilateral sources in current fiscal year. Around $3.5 billion inflow is expected from Asian Development Bank (ADB), $2.5 billion from the World Bank, $500 million Asian Infrastructure Investment Bank and some from Islamic Development Bank during the ongoing financial year following the deal with the IMF. Finance Minister Miftah Ismail recently informed the media about inflows from friendly countries. Without sharing the names of friendly countries, Miftah Ismail said that Pakistan would receive $1.2 billion deferred oil payment facility from a country.

Meanwhile, one friendly country has expressed interest to invest one to two billion dollars in Pakistan stock market whilst another has shown interest to provide gas worth $2.4 billion to Pakistan on deferred payment. Similarly, another friendly country will deposit two billion dollars with State Bank of Pakistan whilst another will provide two billion Special Drawing Rights (SDRs). The government also wants to sell out Balloki and Haveli Bahadur Shah Power Plants, which would generate additional $2 to $3 billion.