Karachi, July 13, 2023 – Pakistan’s foreign exchange reserves have increased to $9.84 billion by week ended July 7, 2023, up $93 million from the previous week, according to the State Bank of Pakistan (SBP).
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The increase in foreign exchange reserves is a positive development for Pakistan, as it will help to boost the country’s economy. The SBP has said that the reserves are expected to increase further in the coming weeks, as the country receives inflows from the International Monetary Fund (IMF), Saudi Arabia, and the United Arab Emirates (UAE).
The SBP’s official foreign exchange reserves rose to $4.524 billion, up $61 million from the previous week. The increase in official reserves was attributed to government inflows.
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The foreign exchange reserves of commercial banks also increased to $5.315 billion, up $32 million from the previous week.
The increase in foreign exchange reserves is a welcome relief for Pakistan, which has been struggling to maintain its reserves in recent months. The country’s foreign exchange reserves had fallen to a low of $9.1 billion in May 2023, but they have since started to recover.
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The increase in foreign exchange reserves is due to a number of factors, including the government’s recent agreement with the IMF, as well as inflows from Saudi Arabia and the UAE. The IMF has agreed to provide Pakistan with a $6 billion loan, which will help to boost the country’s foreign exchange reserves. Saudi Arabia and the UAE have also pledged to provide Pakistan with financial assistance, which will further help to increase the country’s reserves.
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The increase in foreign exchange reserves is a positive development for Pakistan, but it is important to note that the country’s reserves are still well below their peak levels. In August 2021, Pakistan’s foreign exchange reserves stood at $27.2 billion. The country’s reserves will need to continue to increase in order to meet its import requirements and to support the stability of the Pakistani rupee.
