SBP-held foreign reserves dip slightly to $16.37 billion

ISLAMABAD: Pakistan’s foreign exchange reserves stood at $16.37 billion as of January 3, according to the State Bank of Pakistan (SBP).

During this week, the reserves held by the SBP saw a small drop of $15 million, bringing the total to $11.69 billion. Meanwhile, commercial banks held $4.68 billion in reserves.

Looking back at the previous week, ending December 27, 2024, the total reserves were recorded at $16.4 billion. During this period, the SBP reserves fell by $143 million, mainly due to payments on external debts, settling at $11.71 billion. Commercial banks had $4.6 billion in reserves.

In a recent media briefing, SBP Governor Jameel Ahmad reassured the public that Pakistan has enough foreign exchange to meet the needs of foreign investors and businesses.

He highlighted that, in 2023, Pakistan paid $330 million to foreign investors in dividends and profits, a figure that surged to $2.2 billion last year.

The Governor also shared plans to gradually reduce the policy rate to ease the country’s economic pressures. He said the inflation target for this fiscal year is set between 5 per cent and 7 per cent, and with inflation under control, the economy is expected to show positive signs.

Governor Ahmad expressed confidence that Pakistan’s current account will show a surplus by December.

He also noted that remittances are stabilising and are expected to reach $35 billion by the end of the fiscal year. Although exports are on the rise, he stressed the need to boost them even further to drive stronger economic growth.

On the subject of foreign debt, the Governor assured that Pakistan’s debt remains steady at $100.8 billion, which is the same level as in 2022. A small increase of $500 million was due to debt revaluation but overall the country’s foreign debt position has improved.

He highlighted the importance of carefully managing external financial challenges, particularly the balance of payments, which remains a key issue for Pakistan’s economic future.

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