Pakistan Repays $1.3 Billion in External Debt

Karachi: Pakistan has fulfilled its international financial obligations by repaying more than $1.3 billion in external debt. According to the latest statement issued by the State Bank of Pakistan (SBP), the payment resulted in a decline in the central bank's official foreign exchange reserves, while commercial banks recorded an increase in their holdings.

State Bank and Commercial Banks' Foreign Exchange Reserves

According to the central bank, Pakistan's foreign exchange position after the scheduled external debt repayment is as follows:

• State Bank reserves: Following the repayment, the SBP's net foreign exchange reserves stand at $15.9164 billion.
• Commercial bank reserves: Net foreign exchange reserves held by scheduled commercial banks increased to $5.5683 billion.

Overall Foreign Exchange Position

The SBP stated that Pakistan's total liquid foreign exchange reserves, including those held by the central bank and commercial banks, currently stand at $21.4847 billion.

Economic analysts say that the successful repayment of more than $1.3 billion demonstrates Pakistan's commitment to meeting its external debt obligations on time, which could strengthen the country's credibility with international financial institutions.

Key Takeaways

• Major repayment: Pakistan has successfully repaid more than $1.3 billion in external debt.
• Healthy reserves: Total liquid foreign exchange reserves remain at $21.48 billion.
• Positive banking trend: Despite lower central bank reserves, commercial bank reserves have risen above $5.5 billion, reflecting a positive development in the financial sector.