Pakistan’s foreign exchange reserves exceed $13 billion mark

Karachi: The State Bank of Pakistan (SBP) revealed the latest figures for Pakistan’s foreign exchange reserves on Friday, covering the week ending April 26.

During this period, the SBP reported a $25 million increase in foreign reserves, pushing the total to $8.0 billion.

Read more: Pakistan’s inflation slowed to 17.3 per cent in April

The SBP also disclosed that the commercial banks collectively held reserves amounting to $5.31 billion. The combined total increase brings Pakistan’s total foreign exchange reserves to $13.31 billion as of April 26.

In related news, Pakistan Bureau of Statistics reported that Pakistan’s consumer price inflation decreased to 17.3 per cent in April compared to the previous year. This shows a significant drop from a peak of 38 per cent recorded in May last year. The drop is attributed to ongoing economic reforms linked to an IMF bailout programme.

Despite this progress, the average inflation for July-April settled at 25.97 per cent, down from 28.23 per cent during the same period last year.

The Ministry of Finance expects a further drop in the country’s inflation. The ministry projected a range of 18.5-19.5 per cent for April 2024. The optimistic outlook is attributed to favourable base effects from the previous year and enhancements in the domestic supply chain.

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The government is actively implementing administrative measures to address inflation, aiming for a gradual decrease to 17.5-18.5 per cent by May 2024.

Meanwhile, the SBP has also maintained a high interest rate at 22 per cent in an attempt to control inflation.