Karachi, August 8, 2024 – The foreign exchange reserves of Pakistan saw a modest increase of $80 million during the week ending on August 2, 2024, according to the latest data released by the State Bank of Pakistan (SBP).
This rise comes as a positive development amid ongoing economic challenges and anticipation of financial assistance from international institutions.
As of August 2, 2024, the country’s total foreign exchange reserves reached $14.472 billion, up from $14.392 billion reported the previous week on July 26, 2024. This increase is primarily attributed to a $51 million rise in the SBP’s official reserves, which now stand at $9.153 billion, compared to $9.102 billion a week earlier.
In addition to the increase in the SBP’s reserves, commercial banks also experienced a boost in their foreign exchange holdings. The reserves held by commercial banks rose by $29 million, bringing the total to $5.319 billion as of August 2, 2024, up from $5.29 billion in the preceding week.
This increase in reserves comes at a critical time for Pakistan as the country is on the cusp of securing a much-needed financial package from the International Monetary Fund (IMF). Pakistan is expecting a loan package worth $7 billion from the IMF, and the disbursement of these funds is anticipated to provide a significant boost to the nation’s foreign exchange reserves. This financial support is crucial for stabilizing the economy, addressing balance of payments issues, and bolstering investor confidence.
The rise in reserves, though modest, is seen as a positive signal for the country’s financial stability. It reflects the government’s ongoing efforts to manage the external account and strengthen its financial position in anticipation of further inflows from the IMF and other sources.
The financial markets and economic analysts are closely monitoring these developments as the country navigates through its economic recovery phase. The increase in reserves, coupled with the expected IMF support, is likely to provide some relief to Pakistan’s economy, which has been grappling with inflation, currency depreciation, and external debt challenges.
As Pakistan continues its efforts to stabilize the economy, the government and central bank’s focus remains on maintaining and increasing foreign exchange reserves to ensure financial stability and sustain economic growth in the coming months.
