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SBP-held foreign reserves fall 4.17% to $7.5bn

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2 years ago

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  • SBP-held forex reserves drop to $7,498.7 million.
  • Overall forex reserves stand at $13,378.2 million.
  • Reserves expected to register gains next week.

KARACHI: State Bank of Pakistan (SBP)-held foreign exchange reserves declined by 4.17% in line with the dominant trend for the last several weeks.

The foreign currency reserves held by the SBP were recorded at $7,498.7 million as of November 25, down $327 million compared with $7,825.7 on November 18, data released by SBP showed.

Overall liquid foreign currency reserves held by the country, including net reserves held by banks other than the SBP, stood at $13,378.2 million.

Net reserves held by banks amounted to $5,879.2 million. The central bank cited external debt repayment as the reason behind this decline.

With the current foreign exchange reserves position, Pakistan has an import cover of fewer than 1.6 months.

The reserves are expected to register gains next week as the Government of Pakistan received $500 million from Asian Infrastructure Investment Bank (AIIB).

The Ministry of Finance, in its tweet, had said that funds are deposited with SBP and “will augment Pakistan’s reserves”.

The development did not reflect in SBP’s data as the amount was received after the cut-off date. The assistance will reflect in the reserves next week.

However, Pakistan has to repay a $1.08 billion international bond, which matures on December 5.

This payment might put additional pressure on the already depleting foreign exchange reserves as SBP Governor Jameel Ahmad last week, in the post-monetary policy briefing, revealed that the payment will be made three days before its due date i.e. December 5.

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In interbank trade, the Pakistani rupee beats the US dollar.

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6 days ago

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In the international exchange market, the US dollar has continued to weaken in relation to the Pakistani rupee.

The dollar fell to Rs278.10 from Rs278.17 at the beginning of interbank trading, according to currency dealers, a seven paisa loss.

In the meantime, there was a lot of turbulence in the stock market, but it recovered and moved into the positive zone. The KSE-100 index recovered momentum and reached 116,000 points after soaring 1,300 points.

Both currency and stock market swings, according to analysts, are a reflection of ongoing market adjustments and economic uncertainty.

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Business

Phase II of CPEC: China-Pakistan Partnership Enters a New Era

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1 week ago

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The cornerstone of economic cooperation between the two brothers and all-weather friends is still the China-Pakistan Economic Corridor, the initiative’s flagship project.

In contrast to reports of a slowdown, recent events indicate a renewed vigour and strategic emphasis on pushing the second phase of CPEC, known as CPEC Phase-2, according to the Ministry of Planning, Development, and Special Initiatives.

According to the statement, this crucial stage seeks to reshape the foundation of bilateral ties via increased cooperation, cutting-edge technology transfer, and revolutionary socioeconomic initiatives.

Planning Minister Ahsan Iqbal is leading Pakistan’s participation in a number of high-profile gatherings in China, such as the 3rd Forum on China-Indian Ocean Region Development Cooperation in Kunming and the High-Level Seminar on CPEC-2 in Beijing.

His involvement demonstrates Pakistan’s commitment to reviving CPEC, resolving outstanding concerns, and developing a strong phase-2 roadmap that considers both countries’ long-term prosperity.

At the core of these interactions is China’s steadfast determination to turn CPEC into a strategic alliance that promotes development, progress, and connectivity.

Instead of being marginalised, CPEC is developing into a multifaceted framework with five main thematic corridors: the Opening-Up/Regional Connectivity Corridor, the Innovation Corridor, the Green Corridor, the Growth Corridor, and the Livelihood-Enhancing Corridor.

With the help of projects like these, the two countries will fortify their partnership, and CPEC phase-2 will become a model of global economic integration and collaboration that benefits not just China and Pakistan but the entire region.

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Business

The inflation rate in Pakistan dropped to its lowest level.

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1 week ago

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On December 2, core inflation as determined by the Consumer Price Index (CPI) significantly slowed, falling to 4.9% in November 2024 from 7.2 percent in October 2024.

The CPI-based inflation rate for the same month last year (November 2023) was 29.2%, according to PBS data.

Compared to a 1.2% gain in the prior month, it increased by 0.5% month over month in November 2024.

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