Foreign exchange reserves held by the State Bank of Pakistan (SBP) decreased $169 million on a weekly basis, clocking in at $17.69 billion, showed data released on Thursday.

The central bank did not provide a reason for the week-on-week decline in reserves.

Last week, SBP-held foreign exchange reserves were down $298 million due to external debt repayment.

Meanwhile, total liquid foreign reserves held by the country stood at $24.02 billion on December 31, 2021, stated the SBP. Net foreign reserves held by commercial banks stood at $6.33 billion.

Pakistan has been looking to build its foreign currency reserves on the back of loans, remittances, and higher exports. However, foreign direct investment continues to be an area of concern for policymakers.

The reserves level is also critical for Pakistan to build an import cover with the bill crossing $6 billion each month, putting pressure on the currency that fell to its weakest level against the US dollar recently.

The story was first published in Business Recorder on January 6, 2022.