SBP reserves fall $54m

The foreign exchange reserves held by the State Bank of Pakistan (SBP) declined by $54 million to $8.216 billion during the week ended on Jan 26, announced the central bank on Thursday. However, the SBP succeeded to retain the total reserves above $8 billion. The reserves have been a crucial point for the country as it supports both the exchange rate and stability in the trade regime. The trade deficit declined during the first seven months of the current fiscal year while the current account is also manageable. However, the payment of debt servicing is still a big hurdle for the economic managers. Reports appeared in the media suggest that China has rolled over $2bn, which was due to be paid in March by Pakistan but no confirmation was available from the Ministry of Finance so far.