SBP-held reserves rise by $23 million to $10.7 billion

KARACHI: Pakistan’s foreign exchange reserves held by the State Bank of Pakistan (SBP) inched up by $23 million during the week ending April 4, reaching $10.70 billion, according to data released by the central bank on Thursday.

The total liquid foreign reserves of the country, including those held by commercial banks, stood at $15.75 billion. Of this amount, commercial banks held $5.05 billion in net reserves.

The SBP did not mention any specific reason for the modest increase in reserves.

“During the week ended on April 4, 2025, SBP reserves increased by US$23 million to US$10,699.4 million,” said the central bank in its brief weekly update.

In the previous week, SBP reserves had climbed by $70 million to reach $10.68 billion.

Meanwhile, developments in the global economy may impact Pakistan’s external account in the coming weeks. Recent policy shifts in the United States, particularly regarding tariffs, are being closely watched by analysts.

Last week, former US President Donald Trump announced sweeping tariffs on imports from several trading partners. The move sparked fears of a global recession, with financial markets witnessing sharp declines and oil prices tumbling as tensions escalated between the US and China.

However, the situation took a turn on Wednesday when the US government introduced a 90-day delay on some of the new reciprocal tariffs. At the same time, it raised duties on select Chinese imports to as high as 125 per cent, signalling a significant shift in its trade stance.

Analysts say the slump in global commodity prices, especially oil, could offer some relief to Pakistan. The lower oil prices are expected to ease the country’s import bill and reduce inflationary pressures. According to estimates, the decline in oil and RLNG prices could cut Pakistan’s import expenses by up to $2.1 billion.

Still, there are concerns on the export front. Pakistan’s textile sector, which accounts for roughly 75 per cent of the country’s total exports — valued between $5 billion and $6 billion — may face challenges due to higher US tariffs, potentially impacting future export earnings.

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