SBP reports highest forex reserves since July 2023

WEB DESK: In a weekly update, the State Bank of Pakistan (SBP) reported a notable surge in foreign exchange reserves, revealing an increase of $464 million, reaching $8.2 billion as of December 29.

The total liquid foreign reserves for the country now stand at $13.2 billion, with commercial banks holding $5 billion in net foreign reserves.

Attributing the rise to official government inflows, the SBP highlighted that during the week ending on December 29, 2023, its reserves rose to $8,221.2 million.

This follows last week’s substantial increase of $852 million. These levels mark the highest point since July 14, 2023, when the central bank’s reserves reached $8.73 billion, primarily fueled by a $1.2 billion tranche from the International Monetary Fund (IMF) under a new $3-billion stand-by arrangement (SBA).

The country also experienced inflows from Saudi Arabia and the UAE.

Despite facing pressure from debt repayments, increased import payments post-restriction easing, and a lack of fresh inflows, Pakistan’s SBP reserves have rebounded, showcasing resilience in the nation’s economic standing.

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