KARACHI: February 28, 2020 – Pakistan’s total liquid foreign exchange reserves posted a notable increase of $126 million during the week ended February 28, 2020, according to data released by the State Bank of Pakistan (SBP) on Thursday.
The country’s total foreign exchange reserves climbed to $18.869 billion, up from $18.743 billion a week earlier. This rise reflects a continued buildup in the central bank’s holdings, which have remained a key priority in Pakistan’s macroeconomic stabilization efforts.
A detailed breakdown revealed that foreign exchange reserves held by the SBP surged by $165 million to reach $12.757 billion by the end of the week. The increase is attributed to improved foreign inflows, disciplined external account management, and reduced pressure on the current account.
On the other hand, foreign exchange reserves maintained by commercial banks saw a decline of $39 million, falling to $6.112 billion from the previous week’s figure of $6.151 billion. The fluctuation in bank-held reserves is a routine outcome of external payments, including trade-related settlements and private remittances.
Economists note that this weekly net gain in foreign exchange reserves is a positive indicator of the country’s external sector resilience. While the SBP’s rising reserves suggest strengthened state capacity to meet external obligations, the decline in commercial bank reserves may reflect ongoing corporate or business sector transactions.
The SBP has been actively managing exchange rate stability and working toward a stronger external buffer to protect against global economic uncertainties. Sustained improvement in foreign exchange reserves is critical for enhancing Pakistan’s creditworthiness, supporting the rupee, and providing a cushion against external shocks.
With global economic headwinds and trade vulnerabilities still present, experts stress the need for continued vigilance in managing foreign exchange dynamics. The latest figures provide cautious optimism for Pakistan’s economic outlook, signaling incremental progress in building a more stable and resilient financial framework.