Karachi, July 6, 2023 – Pakistan’s foreign exchange reserves have experienced a notable increase of $405 million within a week, according to data released by the State Bank of Pakistan (SBP) on Thursday.
By the week ending on June 30, 2023, the country’s foreign exchange reserves reached $9.746 billion, marking a rise from $9.341 billion recorded by the week ending on June 23, 2023.
READ MORE: Pakistan Witnesses $477 Million Increase in Foreign Exchange Reserves
It is important to highlight 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 $17.482 billion.
The SBP’s official foreign exchange reserves observed a boost of $393 million, climbing to $4.463 billion by the week ending on June 30, 2023, in comparison to $4.07 billion the previous week. The central bank attributed this increase to the government’s official inflows.
READ MORE: Pakistan’s Foreign Exchange Reserves Plunge by $514 Million, Raising Concerns
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 $15.683 billion.
The bolstered foreign exchange position has played a crucial role in helping Pakistan tackle external sector challenges. Furthermore, the recently secured Stand-by Agreement (SBA) loan program, amounting to $3 billion, under the International Monetary Fund (IMF), is expected to further contribute to the country’s reserves position.
READ MORE: Pakistan’s Foreign Exchange Reserves Increase by $43 Million
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 are positive signs for the country’s economic stability and its ability to address external challenges. These reserves will provide a cushion in times of economic volatility and aid in maintaining a favorable foreign exchange rate. The government’s focus on enhancing reserves will be vital in ensuring a strong and resilient economy moving forward.
READ MORE: SBP’s Foreign Exchange Reserves Plummet to $3.912 Billion, Below One-Month Import Cover
