Karachi, December 12, 2024 – Pakistan’s foreign exchange (forex) reserves experienced a minor dip, falling to $16.60 billion on a weekly basis, according to data released by the State Bank of Pakistan (SBP) on Thursday.
The decline highlights marginal changes in Pakistan’s forex reserves amidst ongoing economic adjustments.
Pakistan’s total forex reserves dropped by $19 million, reaching $16.601 billion by the week ending December 6, 2024, compared to $16.62 billion recorded a week earlier on November 29, 2024. Despite the slight decline, the forex reserves maintained by the SBP witnessed a modest increase, rising by $13 million to $12.051 billion from $12.038 billion over the same period.
In contrast, the forex reserves held by commercial banks saw a decrease of $32 million, closing at $4.55 billion as of December 6, 2024, compared to $4.582 billion recorded the previous week. This shift in forex reserves underscores the varying dynamics between reserves managed by the central bank and those held by private banking institutions.
Analysts attribute the slight fluctuation in forex reserves to routine external payments, including debt servicing and import settlements. However, the continued inflow of remittances and export receipts has provided a stabilizing effect, preventing a more significant decline in the country’s forex position.
The SBP has emphasized the importance of maintaining adequate forex reserves to support the country’s economic stability and ensure timely debt repayments. With reserves primarily bolstered by remittances from overseas Pakistanis and financing inflows from international development partners, the SBP continues to monitor forex reserves closely to manage external vulnerabilities effectively.
As of now, Pakistan’s forex reserves remain crucial in underpinning the local currency and sustaining economic activity. The minor weekly changes reflect the delicate balance between inflows and outflows, highlighting the ongoing challenges in maintaining forex stability in a complex global economic environment.
Efforts to enhance export competitiveness, attract foreign investment, and secure additional external financing remain key to strengthening Pakistan’s forex reserves in the medium to long term. Policymakers are urged to prioritize measures that support sustained growth in forex reserves to ensure resilience against external economic shocks.