Karachi, July 4, 2023: Pakistan’s foreign exchange reserves have experienced a significant increase of $477 million over the course of a week, as revealed by data released by the State Bank of Pakistan (SBP).
By the week ending on June 23, 2023, the country’s foreign exchange reserves reached $9.341 billion, rising from $8.864 billion recorded by the week ending on June 16, 2023.
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It is worth noting that Pakistan had achieved an all-time high in foreign exchange reserves, reaching $27.228 billion on August 27, 2021. However, since then, these reserves have witnessed a decline of $17.887 billion.
The SBP’s official foreign exchange reserves observed a boost of $533 million, climbing to $4.07 billion by the week ending on June 23, 2023, in comparison to $3.537 billion the previous week. The central bank attributed this increase to the realization of $300 million proceeds from the government’s commercial loan.
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While the SBP’s official reserves had reached a record high of $20.146 billion by the week ending on August 27, 2021, they subsequently decreased by $16.076 billion.
The bolstered foreign exchange position has helped Pakistan in facing external sector challenges. Additionally, the recently secured Stand-by Agreement (SBP) loan program, amounting to $3 billion, under the International Monetary Fund (IMF), is expected to further contribute to the country’s reserves position.
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However, the foreign exchange reserves of commercial banks saw a slight decline. By the week ending on June 23, 2023, they amounted to $5.271 billion, down by $56 million from $5.327 billion the previous week.
Overall, the increase in foreign exchange reserves and the efforts made by Pakistan to strengthen its position bode well for the country’s economic stability and ability to address external challenges.
