KARACHI: Pakistan’s total liquid foreign exchange reserves declined by $30 million to $26.833 billion during the week ended October 16, according to figures released by the State Bank of Pakistan on October 22.
The previous week’s total stood at $26.863 billion.
The decline was driven by a reduction in foreign currency holdings at commercial banks, which more than offset an increase in reserves held by the central bank.
The State Bank’s own reserves rose by $19 million to $21.489 billion, compared with $21.470 billion in the preceding week.
Commercial banks, meanwhile, reported reserves of $5.344 billion, down $49 million from $5.393 billion a week earlier.
The figures show that Pakistan’s overall reserve position weakened slightly even as the central bank recorded a second consecutive weekly increase.
In the week ended October 9, State Bank reserves had risen by $16 million.
Foreign exchange reserves are used to assess the country’s capacity to meet external payment obligations and support imports.
The central bank’s holdings are particularly important because they form the official reserve buffer available to monetary authorities.
Commercial bank reserves are reported separately and form part of the country’s total liquid foreign exchange reserves.
The latest weekly figures therefore show two different movements: a modest improvement in the State Bank’s position and a larger decline in foreign currency held by commercial banks.
The net result was a $30 million reduction in Pakistan’s combined reserves.