Karachi, April 4, 2024 – Pakistan has experienced a decline of $49 million in its foreign exchange reserves for the week ending March 29, 2024, according to official data released on Thursday.
The State Bank of Pakistan (SBP) reported that the total foreign exchange reserves of the country fell to $13.379 billion by the week ending March 29, 2024, compared to $13.428 billion recorded a week earlier on March 22, 2024.
However, there was a marginal increase in the official foreign exchange reserves of the State Bank, which rose by $18 million to reach $8.04 billion for the week ending March 29, 2024, as compared to $8.022 billion in the preceding week.
Conversely, the foreign exchange reserves held by commercial banks experienced a decline of $67 million, reaching $5.337 billion by the week ending March 29, 2024. This marks a decrease from the previous week’s closing figure of $5.406 billion.
The decrease in overall foreign exchange reserves comes at a time when Pakistan’s economic landscape is facing various challenges, including pressure on its foreign exchange reserves due to high import payments, debt repayments, and a widening trade deficit.
Analysts suggest that the decline in reserves could be attributed to several factors, including increased import payments, lower inflows of remittances, and debt obligations. Additionally, fluctuations in global commodity prices and uncertainties in the international financial markets may have contributed to the decline.
Despite the decrease, authorities remain vigilant in managing the country’s foreign exchange reserves to ensure stability in the currency markets and meet external payment obligations. Efforts to bolster reserves through various means, including attracting foreign investment, increasing exports, and implementing prudent monetary policies, continue to be prioritized.
The State Bank of Pakistan has been actively engaged in managing the country’s foreign exchange reserves to mitigate external vulnerabilities and support economic growth. The central bank regularly monitors and adjusts its monetary policy tools to maintain adequate reserves and promote stability in the foreign exchange market.
As Pakistan navigates through economic challenges, maintaining a healthy level of foreign exchange reserves remains crucial for safeguarding against external shocks and sustaining economic resilience in the face of global uncertainties. Efforts to strengthen reserves and improve macroeconomic fundamentals are essential for fostering sustainable economic growth and development in the long run.
