Karachi, July 11, 2024 – Pakistan’s weekly foreign exchange reserves have experienced a notable increase of $72 million, the State Bank of Pakistan (SBP) reported on Thursday. This positive trend is a promising indicator of the country’s economic stability.
According to the latest data, Pakistan’s foreign exchange reserves reached $14.645 billion for the week ending July 5, 2024. This marks an increase from the previous week’s total of $14.573 billion on June 28, 2024.
Breaking down the reserves, the official foreign exchange reserves held by the SBP saw an uptick of $15 million. As of July 5, 2024, the SBP’s reserves stood at $9.405 billion, compared to $9.39 billion the previous week. This modest increase reflects a stable inflow of foreign currency and bolsters the central bank’s capacity to manage external financial obligations.
In addition to the central bank’s reserves, the foreign exchange reserves held by commercial banks also showed a substantial rise. The reserves held by commercial banks climbed by $57 million, reaching $5.24 billion from the previous week’s figure of $5.183 billion. This increase highlights a growing confidence in the banking sector and an influx of foreign investments and remittances.
The rise in foreign exchange reserves is a positive signal for Pakistan’s economy, indicating a buffer against external economic shocks and providing a foundation for further economic growth. It also enhances the country’s ability to meet its international payment obligations, supporting the stability of the Pakistani rupee.
Economic analysts suggest that the increase in reserves is partly due to the government’s efforts to attract foreign investments and boost exports. Additionally, remittances from overseas Pakistanis continue to play a crucial role in strengthening the country’s foreign exchange position.
The SBP’s management of the reserves and the overall economic policies will be crucial in maintaining this upward trajectory. Sustainable economic policies and strategic financial management are essential to ensure that the reserves continue to grow and support Pakistan’s economic resilience.