Karachi, November 28, 2024 – Pakistan’s net foreign exchange (forex) reserves have risen by $108 million for the week ending November 22, 2024, according to the State Bank of Pakistan (SBP) report released on Thursday.
The country’s total net forex reserves stood at $16.076 billion by the end of the week, marking an increase from $15.968 billion recorded the previous week, ending November 15, 2024. This positive shift reflects the nation’s improving external sector performance and overall financial stability.
A closer look at the reserves reveals a notable increase in the reserves held by the SBP, which grew by $130 million, reaching $11.418 billion as of November 22, 2024. In comparison, the SBP’s reserves were recorded at $11.288 billion during the previous week. The rise in SBP reserves is a sign of more robust external inflows, which have helped strengthen Pakistan’s overall forex position, bolstering the country’s capacity to meet external debt obligations and maintain a stable currency value.
However, despite the growth in overall reserves, the forex reserves held by commercial banks saw a slight decline. The reserves with commercial banks decreased by $22 million, falling to $4.658 billion as of November 22, 2024, compared to $4.68 billion the previous week. This decline in commercial bank reserves highlights the dynamic nature of foreign exchange holdings in Pakistan’s financial system, as the reserves are subject to various external factors, including fluctuations in global markets and domestic financial activity.
Experts suggest that the increase in the country’s total reserves is a positive indicator for Pakistan’s economic stability. It is expected to help manage the country’s foreign debt obligations, sustain the import of essential goods, and contribute to overall economic growth. The continued growth in reserves, particularly those held by the SBP, reflects the positive impact of recent policies aimed at improving Pakistan’s external sector balance.
