Karachi, August 15, 2024 – Pakistan’s foreign exchange reserves witnessed a significant uptick, climbing by $173 million to reach $14.65 billion by the week ended August 9, 2024, according to a statement released by the State Bank of Pakistan (SBP) on Thursday.
The reserves showed an improvement from $14.472 billion reported on August 2, 2024, reflecting a positive trend for the country’s economy. The SBP’s official reserves alone saw a notable increase, rising by $119 million to $9.272 billion, compared to $9.153 billion the previous week.
Similarly, commercial banks also contributed to this upward trajectory, with their foreign exchange holdings increasing by $54 million, bringing their total to $5.373 billion by the week ended August 9, 2024, up from $5.319 billion a week earlier.
Market analysts have attributed this rise in reserves to a combination of factors, primarily the steady inflow of remittances and export receipts. The consistent flow of remittances from Pakistanis living abroad has provided much-needed support to the country’s foreign exchange position, while the export sector has shown resilience in the face of global economic challenges, further bolstering the reserves.
Experts believe that the situation is poised to improve even further in the coming weeks, as Pakistan is expected to receive additional inflows from the International Monetary Fund (IMF) under the Stand-By Arrangement (SBA). These anticipated funds are likely to provide a substantial boost to the country’s foreign exchange reserves, enhancing economic stability and investor confidence.
The recent increase in reserves is a positive sign for Pakistan’s economy, which has faced significant challenges in recent years. The improved reserve position is expected to ease pressure on the Pakistani rupee, stabilize the exchange rate, and provide the government with more flexibility in managing the country’s external obligations.
The government and central bank are likely to continue focusing on policies aimed at attracting foreign investment, increasing exports, and ensuring the steady inflow of remittances, all of which are crucial for maintaining a healthy reserve position and supporting long-term economic growth.
As the reserves continue to rise, there is cautious optimism in the market, with experts urging the authorities to maintain prudent fiscal and monetary policies to safeguard these gains and ensure sustainable economic development.
