KARACHI: The foreign exchange reserves of the State Bank of Pakistan (SBP) dropped sharply by $2.7 billion in a week, falling to a three-year low and indicating that the $14bn target for FY25 will not be achieved.

The SBP reported on Thursday that during the week ending June 20, its reserves decreased by $2.657bn to $9.064bn due to external debt repayments by the government, primarily for commercial borrowings. In comparison, reserves stood at $9.8bn in FY22.

This marks the largest weekly decline in SBP’s foreign exchange reserves during the current fiscal year — a year that had otherwise seen relatively better performance compared to the previous........

© Dawn Business