Karachi, July 20, 2023 – Pakistan’s foreign exchange reserves have experienced a substantial increase, reaching $14.07 billion, thanks to significant inflows from the International Monetary Fund (IMF) and other friendly countries.
The State Bank of Pakistan (SBP) reported today that the country’s foreign exchange reserves surged by an impressive $4.227 billion, reaching $14.07 billion by the end of the week on July 14, 2023. This notable growth marks a sharp contrast from the previous week when reserves were recorded at $9.838 billion on July 7, 2023.
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While the recent boost in reserves is undoubtedly a positive development for Pakistan’s economy, it is important to acknowledge that the current level still falls considerably below the peak level achieved in August 2021 when reserves stood at $27.2 billion. As a result, it remains crucial for Pakistan to continue augmenting its reserves further to meet import requirements adequately and ensure stability for the Pakistani rupee.
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Among the contributing factors to this substantial increase, the State Bank of Pakistan highlighted that the official foreign exchange reserves saw an influx of $4.203 billion, elevating them to $8.727 billion as of July 14, 2023, compared to $4.524 billion just a week earlier.
The SBP attributed the surge in foreign exchange reserves to foreign inflows, with a significant portion coming from friendly nations. The Kingdom of Saudi Arabia extended a noteworthy $2.0 billion, the IMF provided $1.2 billion, and the United Arab Emirates (UAE) contributed $1 billion.
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Additionally, the foreign exchange reserves of commercial banks in Pakistan also witnessed growth, reaching $5.338 billion, which reflects an increase of $24 million from the previous week.
Pakistan’s economic landscape is set to benefit from these bolstered foreign exchange reserves, but policymakers and financial authorities will need to remain vigilant in managing the inflows and ensuring they are utilized effectively to maintain the country’s economic stability and growth.
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