Karachi, November 30, 2023 – Pakistan experienced an increase of $91 million in its foreign exchange reserves for the week ending November 24, 2023.
The State Bank of Pakistan (SBP) announced on Thursday that the country’s foreign exchange reserves rose to $12.393 billion, compared to $12.302 billion recorded just a week earlier on November 17.
This uptick in reserves brings a momentary relief amid concerns about the country’s ability to meet import requirements and sustain stability for the Pakistani Rupee in the international currency market. It’s essential to note that Pakistan’s foreign exchange reserves are still significantly lower than their peak level in August 2021, when they reached a robust $27.2 billion.
The official foreign exchange reserves of the State Bank of Pakistan saw a notable increase of $77 million, reaching $7.257 billion by the week ending November 24, 2023, in contrast to $7.18 billion reported a week ago. Simultaneously, the foreign exchange reserves held by commercial banks also saw an uptick, recording a $14 million increase to reach $5.136 billion by the same week, compared to $5.122 billion a week prior.
The rise in foreign exchange reserves is a positive indicator for Pakistan’s economic stability, offering a buffer against external economic pressures and uncertainties. While the recent increase is a step in the right direction, experts highlight the importance of continued efforts to enhance reserves further and address the wider economic challenges.
The decline in foreign exchange reserves since the peak in 2021 has been a cause for concern, and authorities have been implementing various measures to address the imbalance. The increase in reserves this week is attributed to factors such as improved economic conditions, remittances, and potential positive developments in trade and investment.
As the country navigates economic challenges, including concerns over inflation and trade deficits, the augmentation of foreign exchange reserves provides a positive signal. Policymakers and financial experts continue to monitor these indicators closely, emphasizing the need for sustainable economic practices to ensure long-term stability and growth for Pakistan’s economy.
