Pakistan is facing turmoil in its foreign reserves which have been decreasing for the past decade. In October 2016 Pakistan had $24,025.8 million in foreign reserves.
Country’s foreign reserves refer to the assets held in foreign currency and commodities like silver and gold. The foreign reserves help in backing the country’s currency and central banking functions. The more the foreign reserves are the better the economy is and the local currency is more stable.
Pakistan currently holds total liquid foreign reserves of $19,842.8 million observed on October 27, 2017. Current foreign reserve position and its breakdown were released on Thursday which shows that foreign reserves held by the State Bank of Pakistan (SBP) are $13,846.7 million. Besides state bank holding, net foreign reserves held by commercial banks are $5,996.1 million, which makes a total of $19,842.8 million.
During the week ending on October 27, 2017, SBP’s reserves plunged by $95 coming down to $13,847 million. The slump was due to external debt servicing and other official payments. Before that SBP’s foreign reserves were held at $13,942—according to Nation.
Comparison with the world
Foreign reserves serve as an indicator of growing economy, China is the country which holds the most foreign reserves, In September 2017 China had total foreign reserves of $3108510 million. Japan has the second most foreign reserves of $1266310 million, India has $399920 million in foreign reserves.