Foreign exchange reserves enter 'danger zone', plunge below $8 billion

Karachi: The country’s foreign exchange reserves held by the State Bank of Pakistan (SBP) dropped by 1.32 per cent to below the psychological level of $8 billion.

On September 30, the reserves held by the State Bank of Pakistan (SBP) were recorded at $7,899.8 million-- down $106 million compared with $8,005.9 on September 23, data released by SBP showed on Thursday.

Overall liquid foreign currency reserves held by the country, including net reserves held by banks other than the SBP, stood at $13,588.8 million. Net reserves held by banks amounted to $5,689 million.

According to the central bank, external debt repayment -- including interest payments on Eurobonds -- is a major reason behind the decline.

Pakistan has an import cover of fewer than one and half months.