Pakistan’s forex reserves sink to three weeks’ worth of import cover

A Pakistani dealer counts US dollars at a currency exchange shop in Karachi on November 30, 2018. (AFP/File)

• Reserves held by commercial banks stood at $5.8 billion, and total liquid reserves at $10.1 billion
• Pakistan’s import bill for goods was $5.1 billion per month in both November and December

ISLAMABAD: Pakistan’s foreign exchange reserves held by the central bank dropped $1.2 billion to $4.3 billion as of Jan. 6, the central bank said on Thursday, leaving the cash-strapped country with barely three weeks’ worth of import cover.

The drop was due to external debt repayments, the State Bank of Pakistan (SBP) said in a statement.

Net foreign exchange reserves held by commercial banks stood at $5.8 billion, and total liquid reserves at $10.1 billion, the bank added.

Despite recent compression measures by the government, Pakistan’s import bill for goods was $5.1 billion per month in both November and December, according to the country’s statistics bureau. Its main imports are critical energy-related fuels.