The country's total liquid foreign reserves reached below $17 billion to $16.652 billion mark as on May 18, 2018 compared to $17.067 billion as on May 11, 2018. As the SBP is responsible for external debt payments, the entire declined has been witnessed from the SBP's reserves, which fell $479 million during the last week. During the week ending 18th May, SBP's reserves decreased by $479 million to $10.32 billion down from $10.799 billion. According to report the decline in SBP's reserves was due to payments on account of external debt servicing.
Similarly, reserves held by banks increased by $64 million to $6.33 billion end of last week up from $6.268 billion a week earlier. It may be mentioned here that last month, the country obtained a loan of $1 billion from a Chinese bank to build its depleting foreign exchange reserves and reduce pressure on external account. However the entire loan has been consumed in a month for external debt servicing and other official payments. During the May, the country has made payments amounted to $1.19 billion on account of external debt servicing and other official payments. With these payments, SBP's reserves fell $347 million in the first week of this month. Some $364 million declined in the second week and $479 million in the third week of May due to external debt servicing and other official payments.