KARACHI: The State Bank of Pakistan (SBP) has reported a loss of nearly two billion dollars here on Thursday during the last fortnight in its foreign exchange reserves. According to the SBP, the foreign reserves recorded a loss of $346 million during the week that ended on October 22.
The foreign reserves had depleted by $1.6bn alone last week. The total losses since the past few weeks now stand at $1.946bn.
In August, the reserves of the SBP stood at a peak of $20bn. However, a loss of $2.854bn has been recorded since then. According to the central bank, the losses were incurred because large amounts were used for external debt servicing.
The total fall in the country’s reserves is estimated to be $3.135bn since the record peak of $27.068bn, while the reserves of commercial banks fell by $48m to $6.787bn.
Earlier the US dollar dropped by 52 paisa, recording the final value at Rs172.26 on Thursday. The appreciation in rupee was reportedly due to a $3bn Saudi package. The dollar declined by Rs2.48 on Wednesday, recording rise in rupee value for the time since May 2021.
Be wary of high inflation, warns Finance Ministry
Ministry of Finance in its monthly economic update said that the rise in oil prices in the international market, depreciation in the exchange rate and adjustments in administered prices may lead to an increased inflation.
“The inflation rate in October is expected to settle below the level observed in September, but the probability range is wide,” said the update.
According to the ministry, the economic activities have revived but the rise in commodity prices in the international market will affect the prices of local products.
However, the initiative of pro-growth will help to bring relief to the public.