SBP’s forex reserves fall to eight-year low

With the expected IMF tranche still nowhere to be seen, State Bank of Pakistan’s foreign exchange reserves on Thursday further declined by $294 million to $5.8 billion — their eight years’ low — making it even more difficult for the country to repay its foreign debts. The country has been facing a worrisome scenario as the reserves are not enough to service its huge foreign debt. Though Finance Minister Ishaq Dar insists Pakistan will not default, the situation on the ground hardly supports his assertions. The central bank’s foreign exchange reserves have been persistently falling since the beginning of FY23. Analysts and experts paint a gloomy picture for the state of economy as they believe that the country is close to default. They are not simply ready to buy the finance minister’s statement on default.