Karachi, May 16, 2024 – Pakistan’s foreign exchange reserves witnessed a notable increase, surging by $167 million in the past week, according to official data released on Thursday by the State Bank of Pakistan (SBP).
As per the SBP report, the country’s total foreign exchange reserves reached $14.626 billion by the week ending on May 10, 2024, compared to $14.459 billion recorded a week earlier, on May 3, 2024.
The central bank’s own reserves also experienced a boost, rising by $15 million to stand at $9.135 billion by the end of the week ending on May 10, 2024, compared to $9.12 billion reported a week prior.
Moreover, the foreign exchange reserves held by commercial banks in Pakistan demonstrated significant growth, increasing by $152 million to reach $5.491 billion by the week ending on May 10, 2024, compared to $5.339 billion reported in the preceding week.
The surge in Pakistan’s forex reserves reflects positive developments in the country’s economic landscape, bolstering investor confidence and signaling stability in the foreign exchange market. These reserves play a crucial role in safeguarding the country’s economy against external shocks and facilitating international trade and payments.
The increase in reserves can be attributed to various factors, including higher remittances, improved export performance, and inflows from multilateral institutions and friendly countries. Additionally, prudent monetary policies and effective management of the exchange rate have also contributed to bolstering the forex reserves.
The rise in reserves comes at a time when Pakistan, like many other countries, is navigating through global economic challenges, including inflationary pressures and geopolitical uncertainties. The increase provides a cushion against external vulnerabilities and strengthens the country’s capacity to meet its external obligations.
Analysts view the upward trajectory of Pakistan’s forex reserves as a positive sign for the economy, highlighting the effectiveness of government policies and the resilience of the banking sector. They emphasize the importance of maintaining this momentum through continued efforts to enhance exports, attract foreign investment, and implement structural reforms aimed at sustaining economic growth.
As Pakistan’s forex reserves continue to grow, policymakers and stakeholders are urged to remain vigilant and proactive in addressing emerging challenges and seizing opportunities to further strengthen the country’s economic resilience and stability.