SBP forex reserves surge to $7.7 billion in a week

WEB DESK: The State Bank of Pakistan (SBP) saw a noteworthy surge in its foreign exchange reserves, with a remarkable increase of $67 million in just one week, bringing the total to $7.7 billion as of October 13, as per data released on Thursday.

When considering Pakistan’s overall liquid foreign reserves, the figure amounts to $12.9 billion.

This includes the net foreign reserves of $5.2 billion held by commercial banks in the country. The central bank, however, did not specify the reason for this recent boost in reserves.

According to the official statement, during the week ending October 13, 2023, SBP’s reserves increased by $67 million, reaching $7,714.0 million.

This uptick follows a $31 million increase in Pakistan’s central bank reserves in the preceding week.

This positive momentum began in July, when the State Bank of Pakistan received a substantial boost in reserves.

Pakistan obtained the first instalment of approximately $1.2 billion from the International Monetary Fund (IMF) following the approval of a new $3-billion stand-by arrangement.

Read more: Most suitable automatic cars for women to buy in Pakistan

Additionally, there were financial inflows from Saudi Arabia and the UAE.

However, despite these encouraging developments, the central bank’s reserves have been under pressure.

This pressure is primarily due to the necessity of meeting debt repayments, increased payments for imports following the easing of restrictions, and a lack of fresh inflows.

The exact factors driving this surge in reserves remain unspecified by the central bank.