Foreign exchange reserves of the State Bank of Pakistan (SBP) decreased by $748 million in the week ended June 17.
Sharing a break in the foreign reserves position, the central bank said the reserves held by the State Bank of Pakistan stood at $8,237.7 million.
According to details shared by the central bank, the overall liquid foreign exchange reserves held by the country, including net reserves held by banks other than SBP, stood at $14,210.4 million. Net reserves held by banks amounted to $5,972.7 million.
The central bank said the decline was mainly due to external debt repayments. However, he added that “SBP reserves are expected to increase in the coming days upon realization of the loan proceeds from the CDB (China Development Bank).”
Pakistan and China sign $2.3 billion loan agreement
Federal Finance and Revenue Minister Miftah Ismail said on Wednesday that Pakistan had signed a 15 billion RMB ($2.3 billion) loan agreement with a consortium of Chinese banks.
The Chinese consortium of banks today signed the RMB 15 billion (~$2.3 billion) loan facility agreement after it was signed by the Pakistani side yesterday. The influx is expected within a few days. We thank the Chinese government for facilitating this transaction.
— Miftah Ismail (@MiftahIsmail) June 22, 2022
The Minister of Finance announced the development on his official Twitter account.
“The influx is expected within a few days. We thank the Chinese government for facilitating this transaction,” he wrote in a tweet.