Karachi, September 19, 2024 – Pakistan’s net foreign exchange reserves increased by $31 million during the week ending September 13, 2024, according to the State Bank of Pakistan (SBP). The country’s total forex reserves now stand at $14.827 billion, up from $14.796 billion recorded on September 6, 2024.
The weekly report from the SBP highlights an increase in official reserves. As of September 13, 2024, the SBP’s reserves saw a rise of $43 million, bringing the total to $9.51 billion compared to $9.467 billion the previous week. This marks a steady improvement in the central bank’s reserves despite the challenging economic landscape.
However, foreign exchange reserves maintained by commercial banks experienced a decline. Commercial bank reserves fell by $12 million, bringing their total to $5.317 billion for the week ending September 13, 2024, down from $5.329 billion a week earlier. The decrease in reserves held by private banks contrasts with the rise in official SBP reserves.
Pakistan’s ability to maintain its foreign exchange levels has been supported by a recent increase in remittances and export receipts. The flow of remittances from overseas Pakistanis has been a key driver in bolstering the country’s foreign currency reserves. Similarly, improvements in export receipts have contributed to the upward trend.
Despite this positive development, concerns remain regarding Pakistan’s foreign exchange stability. The country faces high external debt repayments, which pose a significant threat to maintaining reserve levels. Analysts warn that external payments continue to put pressure on the country’s balance of payments.
In an effort to address its foreign exchange challenges, Pakistan is anticipating financial assistance from the International Monetary Fund (IMF). The country expects to receive $7 billion under an Extended Fund Facility (EFF) from the IMF. These funds are crucial for shoring up Pakistan’s foreign reserves and stabilizing the balance of payments situation.
The latest data offers some optimism regarding Pakistan’s foreign exchange reserves. However, economic experts caution that sustaining these levels in the face of rising external payments and other economic pressures will require consistent inflows from exports, remittances, and international financial support. The country remains focused on managing its economic challenges while working towards long-term stability.
