Pakistan’s Forex reserves dip below $5 billion, no money left for imports

Pakistan’s central bank’s foreign exchange reserves had plummeted to their lowest level since February 2014 after a loss of 22.11 percent, providing a significant difficulty for the nation in financing imports.

The State Bank of Pakistan (SBP) made its declaration on Thursday at a time when the nation urgently needs international assistance to close its current account deficit and secure sufficient reserves to satisfy its debt obligations for the current fiscal year, according to Geo News.

The country currently possesses $10.2 billion in reserves, which are only enough to cover three weeks’ worth of imports when combined with an additional $5.8 billion held by commercial banks.

According to a statement from the central bank, the foreign exchange reserves for the week that ended on January 6 decreased by $1,233 million, or 22.12%, to $4,343.2 million from $5,576.5 million the previous week.

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