KARACHI: The total foreign exchange reserves of Pakistan increased by $92 million to $14.443 billion by week ended June 28, 2019 as compared with $14.351 billion in the previous week, the State Bank of Pakistan (SBP) said on Thursday.

The SBP said that during the week ending June 28, 2019, it received inflow of $500 million from Qatar as placement of funds. After taking into account outflows relating to external debt and other official payments, SBP reserves decreased by $9 million during the week, it added.

The reserves held by commercial banks increased by $101 million to $7.17 billion as compared with $7.069 billion.

The increase in Pakistan’s foreign exchange reserves came after Qatar provided a $500 million placement of funds during the week. The inflow helped strengthen the country’s external position despite payments made towards external debt and other official obligations.

The State Bank of Pakistan continued to hold the largest share of the country’s reserves, while commercial banks also recorded a notable increase in their foreign currency holdings. Foreign exchange reserves are closely watched because they provide an indication of a country’s ability to meet international payment obligations. Higher reserves can also support market confidence and provide a cushion against external pressures, particularly when the country faces higher import payments or debt servicing requirements.