Pakistan's foreign exchange reserves drop to $13.12bn: SBP

Karachi: The foreign exchange reserves of Pakistan have reached $13.12 billion on Thursday.

The SBP said that during the week ended September 1, 2023, the nation's foreign reserves decreased by $44 million to $13.12 billion.

The SBP's reserves decreased by $70 million, falling to $7.77 billion.

However, commercial banks' net foreign reserves fell by $25.6 million to $5.34 billion.

The State Bank of Pakistan's (SBP) foreign exchange reserves decreased by $81 million on August 31 to reach $7.84 billion.

The country's entire liquid foreign reserves, which had decreased by $77.4 million, were now at $13.17 billion. The amount of net reserves maintained by commercial banks decreased by $3.9 million to $5.32 billion.

In order to "bring transparency and competitiveness" to the sector, the State Bank of Pakistan (SBP) decided to implement "structural reforms" in the exchange companies’ industry.

The reforms were implemented, according to a statement released by the central bank today, to improve services to the general public and to bring competition and openness to the sector of exchange companies.

“This is expected to strengthen governance, internal controls, and compliance culture in the sector,” the state bank noted.

As part of these reforms, leading banks actively engaged in foreign exchange business will establish wholly owned “exchange companies to cater to the legitimate foreign exchange needs of general public”.