Pakistan’s forex reserves rise to highest level since July 2022

WEB DESK: In a notable boost to its foreign exchange reserves, the State Bank of Pakistan (SBP) reported an increase of $1.114 billion on a weekly basis, bringing the total to $9.12 billion as of May 3, according to data released on Thursday.

This is the highest level since July 2022, when reserves were last recorded above $9 billion.

According to the SBP report, the surge in reserves was largely attributed to the receipt of $1.1 billion from the International Monetary Fund (IMF), marking the final tranche of the $3 billion stand-by arrangement (SBA).

The central bank’s statement read, “During the week ended on May 3, 2024, SBP reserves increased by US$ 1,114 million to US$ 9,120.3 million, mainly due to the receipt of US$1.1 billion from the IMF as the final tranche under the SBA programme.”

With this boost, Pakistan’s total liquid foreign reserves now stand at $14.46 billion. This figure encompasses both the SBP-held reserves of $9.12 billion and the $5.34 billion in reserves held by commercial banks.

The recent inflow from the IMF has provided a much-needed boost to Pakistan’s foreign exchange reserves, signalling a positive trend after a period of significant financial challenges.

The increase in reserves is expected to bolster confidence in Pakistan’s economic stability and may contribute to the country’s ongoing efforts to strengthen its fiscal position.