Karachi, December 5, 2024 – Pakistan’s foreign exchange (forex) reserves rose to $16.62 billion as of November 29, 2024, reflecting a weekly increase of $544 million, according to a report released by the State Bank of Pakistan (SBP) on Thursday.
The surge in forex reserves was largely driven by an inflow of $500 million from the Asian Development Bank (ADB), bolstering the central bank’s reserves. The official reserves held by the SBP climbed by $619 million during the week, reaching $12.038 billion compared to $11.419 billion recorded on November 22, 2024.
This notable increase provides a welcome boost to Pakistan’s financial stability, as the country continues to manage its external obligations and maintain exchange rate stability amid global economic challenges. The SBP highlighted the critical role of official inflows like those from the ADB in strengthening the country’s reserve position and supporting economic resilience.
However, the forex reserves held by Pakistan’s commercial banks saw a decline of $75 million during the same period, dropping to $4.582 billion from $4.657 billion. This decline may be attributed to outflows for private sector obligations, including imports, debt repayments, and other financial commitments.
The rise in the SBP’s reserves comes as Pakistan seeks to maintain sufficient forex levels to meet its external debt payments and stabilize the Pakistani Rupee against major currencies. Strong reserves are vital for ensuring the country’s ability to import essential goods, manage external shocks, and build investor confidence.
Economists have welcomed the increase in reserves, noting that it will help Pakistan meet upcoming debt obligations while reducing pressure on the exchange rate. They also emphasized the importance of sustaining such inflows through structural reforms, export growth, and diversification of foreign investment.
The government and the SBP remain committed to further enhancing reserve levels by securing additional inflows from multilateral institutions, bilateral partners, and remittances. Maintaining a stable reserve position is critical as Pakistan navigates its broader economic challenges and works towards sustainable economic growth.
The uptick in forex reserves serves as a positive indicator for Pakistan’s economic outlook, though analysts caution that continued vigilance and proactive policy measures will be key to maintaining this momentum.