Karachi, November 14, 2024 – Pakistan’s foreign exchange (forex) reserves saw a slight increase, reaching $15.966 billion by the end of the week on November 8, 2024, according to the State Bank of Pakistan (SBP). This marks an increase of $34 million from the previous week’s level of $15.932 billion, signaling a positive but modest uptick in the country’s forex reserves.
The SBP’s weekly report reveals that the official forex reserves held by the central bank rose by $84 million, bringing them to $11.257 billion. This improvement from the previous week’s $11.175 billion comes as the SBP continues its efforts to stabilize Pakistan’s foreign exchange position amid a challenging economic environment. However, the increase remains incremental, reflecting the ongoing volatility in both local and global economic conditions.
While the SBP’s forex holdings saw a boost, the reserves held by commercial banks declined by $50 million over the same period. As of November 8, these reserves dropped to $4.707 billion from the previous week’s $4.757 billion. The decrease in commercial bank-held forex reserves may indicate that private-sector demand for foreign currency remains robust, as businesses and individuals continue to seek forex for import payments and debt servicing.
Pakistan’s forex reserves are crucial for supporting the Pakistan’s import bill and ensuring the stability of the Pakistani rupee. In recent months, Pakistan has faced pressure on its forex reserves due to rising import costs, external debt repayments, and limited foreign investment inflows. However, slight improvements in remittance flows and financial support from international partners have provided some relief to the overall forex reserve levels.
The efforts of Pakistan’s SBP to bolster forex reserves align with broader economic stabilization initiatives, which include seeking financial support from international lenders and tightening fiscal policies to address Pakistan’s balance of payments. These measures are aimed at reducing the country’s reliance on short-term borrowing and stabilizing the rupee, which has experienced fluctuations due to global currency market volatility.
