PM Shehbaz welcomes $3bn-plus rise in forex reserves after Eurobond proceeds

Prime Minister Shehbaz Sharif on Friday welcomed a more than $3 billion increase in Pakistan’s foreign exchange reserves, attributing the rise to the government’s economic measures and the efforts of the economic team.

The State Bank of Pakistan (SBP) on Thursday said its foreign exchange reserves had increased to $21.389 billion, with the latest rise primarily driven by proceeds from Pakistan’s Eurobond issuance.

Including reserves held by commercial banks, the country’s total liquid foreign exchange reserves stood at $26.791 billion. Commercial banks held $5.402 billion, according to the central bank’s latest data.

PM Shehbaz hails stronger external position

Welcoming the development, PM Shehbaz described the increase in reserves as another milestone on the road to economic stability.

He said the rise was a result of the “day and night efforts” of the economic team and measures taken by the government in the right direction.

The prime minister said improved remittances and services exports, a better current account position and fiscal discipline had also contributed to strengthening the country’s foreign exchange position.

He also cited Pakistan’s successful return to international capital markets, saying it reflected the restoration of global confidence in the country’s economy.

According to PM Shehbaz’s statement, higher reserves would strengthen Pakistan’s ability to meet external payment obligations while improving its capacity to withstand global economic challenges.

“A stable economic position will open new avenues for foreign confidence, investment and sustainable economic growth,” he said.

The prime minister praised Finance Minister Muhammad Aurangzeb, the SBP governor, the government’s economic team and, in particular, overseas Pakistanis for their contribution to the development.

SBP dismisses Rs10 note withdrawal reports

Separately, the SBP rejected reports that the Rs10 banknote was being withdrawn from circulation, describing them as baseless.

The central bank urged the public to ignore rumours concerning the discontinuation of the denomination.

It said a proposal for introducing new-design banknotes was currently under consideration by the federal cabinet, but no decision had been taken to replace or discontinue banknotes of any denomination.

The SBP said any decision regarding the issuance of redesigned notes or withdrawal of existing denominations would be formally communicated to the public.

The clarification followed reports circulating on social media and other platforms that the Rs10 note could be withdrawn from circulation.