Pakistan's total debt and liabilities have reached a new apex of Rs 64 trillion, according to the State Bank of Pakistan (SBP). This figure includes a 39% surge in international debt to Rs 24.1 trillion and a 24% increase in local debt to Rs 39.7 trillion. The government borrowed a substantial Rs 2.21 trillion in August 2023 alone.
Simultaneously, the country's liquid foreign reserves stand at US$ 13,030.8 million, inclusive of an SBP reserve of $7,615.4 million and commercial banks' reserves of $5,415.4 million. This marks a decrease from the previous week's total of $13.162 billion.
The SBP also reported a significant decline in Pakistan's cash holdings during Q1 FY24 with currency in circulation (CiC) decreasing by nearly Rs. 780 billion to Rs. 8.3 trillion from Rs. 9.2 trillion.
Local bank deposits reached Rs. 22.3 trillion, indicating a CiC-to-bank deposit ratio of 37.5 percent and suggesting a shift in banking habits among citizens. The CiC to Money Supply (M2) ratio now stands at 27 percent.
New budget provisions imposing a fee on cash withdrawals by non-filers and the current property market slump have influenced these trends towards lower cash holdings and increased deposits.
Meanwhile, broad money supply and net domestic assets have decreased, but net foreign assets have increased.
In currency markets, the Forex Association noted the Rupee's recent 21-session appreciation streak against the USD, gaining Rs1 to trade at Rs284.68, while the open market recorded a dollar depreciation to Rs284.
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