Pakistan’s SDRs and other reserve assets decline despite overall increase

ISLAMABAD: Pakistan’s official reserve assets experienced a modest increase, rising to $15.13 billion as of May 2024, up from $15.05 billion recorded in the previous month.

This represents an increase of $78.03 million, or 0.5 per cent month-on-month, according to the latest data released by the State Bank of Pakistan (SBP) on Wednesday.

The foreign currency reserves, comprising securities, currency, and deposits held with other central banks and banks both within Pakistan and abroad, showed a significant boost. These reserves stood at $5.2 billion in May, compared to $4.78 billion in April, marking a rise of $419.39 million or 8.8 per cent.

Gold reserves, which include gold deposits and swapped gold, also saw an uptick. They increased by $85.78 million or 1.8 per cent, reaching $4.88 billion, up from $4.8 billion the previous month.

Conversely, the country’s other reserve assets experienced a decline. These assets were recorded at $4.07 billion, a decrease of $276.6 million or 6.4 per cent from $4.35 billion in April.

Special Drawing Rights (SDRs) saw a notable decrease as well. The SDRs amounted to $974.14 million, down $150.54 million or 13.4 per cent from $1.12 billion the previous month.

It is important to note that the SDR is an international reserve asset, not a currency, and its value is based on a basket of five major currencies: the US dollar, the euro, the Chinese renminbi, the Japanese yen, and the British pound sterling.

The reserve position in funds, representing Pakistan’s quota in the International Monetary Fund (IMF), remained stable at $0.16 million, unchanged from the previous month.

Overall, while Pakistan’s official reserve assets experienced a slight increase in May, the mixed performance across different categories highlights the ongoing challenges in managing the country’s financial reserves.

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