Pakistan Witnesses $31 Million Rise in Weekly Forex Reserves

Pakistan Witnesses $31 Million Rise in Weekly Forex Reserves

Karachi, June 20, 2024 – Pakistan’s foreign exchange reserves saw a noteworthy increase of $31 million during the past week, according to a statement released by the State Bank of Pakistan (SBP) on Thursday.

This rise brings the total reserves to $14.415 billion for the week ending on June 14, 2024, up from $14.384 billion recorded the previous week on June 7, 2024.

The SBP’s official foreign exchange reserves experienced a significant boost, rising by $32 million to settle at $9.135 billion by the end of the week. This is an improvement from the $9.103 billion reported in the preceding week. The increase in SBP’s reserves is a positive indicator of the country’s economic stability and its ability to meet foreign obligations and stabilize the local currency.

In contrast, the foreign exchange reserves held by commercial banks experienced a slight decline. The reserves dipped by $1 million, bringing the total down to $5.28 billion by June 14, 2024, compared to $5.281 billion a week earlier. While this dip is minor, it highlights the fluctuating nature of reserves in the banking sector, which can be influenced by various factors including market transactions and customer withdrawals.

The rise in SBP’s reserves can be attributed to several factors including higher remittances from overseas Pakistanis, export proceeds, and foreign direct investments. Additionally, recent measures by the SBP to enhance the inflow of foreign currency have started to show positive results.

Economists and market analysts are viewing this rise in reserves as a positive development for Pakistan’s economy. It not only provides a buffer against external economic shocks but also bolsters investor confidence. The central bank’s ability to maintain and grow its reserves is crucial for managing the country’s external debt and ensuring the stability of the Pakistani rupee.

The slight dip in commercial bank reserves, while noteworthy, does not overshadow the overall positive trend. Analysts believe that the central bank’s continued efforts to strengthen the economy and attract foreign investments will likely lead to further improvements in the country’s forex reserves in the coming months.

As Pakistan continues to navigate its economic challenges, the increase in foreign exchange reserves is a reassuring sign of progress and resilience.