State Bank’s forex reserves rise by $33.4 million in a week

KARACHI: The State Bank of Pakistan’s (SBP) foreign exchange reserves rose by $33.4 million, or 0.36 per cent, reaching $9.44 billion during the week ending on August 30, 2024, according to data released by the central bank.

In a statement, the central bank noted, “During the week ended on August 30, 2024, SBP reserves increased by $33 million to $9.436 billion.” However, the SBP did not provide any specific reason for the rise in reserves.

While the SBP’s reserves saw a slight improvement, the country’s overall foreign reserves fell. Total reserves dropped by $36.4 million, or 0.25 per cent, settling at $14.74 billion, as reserves held by commercial banks declined by $69.8 million, or 1.3 per cent, to $5.3 billion.

Since the start of the current fiscal year, the SBP’s reserves have grown by $47.3 million, reflecting a 0.5 per cent increase.

In a related development, Prime Minister Shehbaz Sharif recently mentioned that his government is working to fulfil the conditions set by the International Monetary Fund (IMF) to complete its loan programme. He expressed hope that this would be Pakistan’s final programme under the IMF.

Pakistan signed a staff-level agreement with the IMF on July 12 for a $7 billion programme set to last 37 months.

However, the country is still awaiting final approval from the IMF’s executive board, which depends on assurances of financial support from development and bilateral partners.

Additionally, Pakistan’s foreign reserves have seen a $1.22 billion, or 14.79 per cent, increase so far this calendar year.

Read next: IMF wants Pakistan to end price controls on key agricultural products