Karachi, November 21, 2024 – The State Bank of Pakistan (SBP) reported an increase of $29 million in its foreign exchange (forex) reserves for the week ending November 15, 2024, reflecting improving economic stability.
Official data released on Thursday revealed that the SBP’s forex reserves rose to $11.288 billion, up from $11.259 billion recorded the previous week. This increase highlights the central bank’s efforts to strengthen the country’s foreign exchange position amid ongoing macroeconomic challenges.
While the SBP’s reserves improved, the forex reserves held by commercial banks witnessed a decline of $27 million, settling at $4.68 billion as of November 15, 2024, compared to $4.707 billion a week earlier. Despite this slight dip, Pakistan’s total net liquid forex reserves experienced a modest rise of $2 million, reaching $15.968 billion, up from $15.966 billion in the preceding week.
Financial analysts noted that the uptick in the SBP’s forex reserves aligns with the country’s recent economic progress. The current account surplus, which has been maintained over the past three months, is a key driver supporting the stabilization of forex reserves. Experts believe that sustained improvements in trade performance and remittance inflows will further bolster Pakistan’s foreign exchange outlook.
“The steady rise in forex reserves is a positive sign for the economy,” remarked one market expert. “It reflects not only improved external account management but also growing confidence from foreign investors and lenders.” Additionally, the surplus has opened avenues for increased foreign investments, with friendly nations and multilateral institutions showing interest in supporting Pakistan’s economic reforms.
However, challenges remain as global economic uncertainties, including fluctuating commodity prices and geopolitical tensions, continue to pose risks to forex accumulation. Analysts have emphasized the importance of sustaining the surplus through export diversification, attracting foreign direct investment (FDI), and maintaining robust remittance inflows.
The SBP’s ability to manage forex reserves effectively will play a critical role in shielding the economy from external shocks and maintaining exchange rate stability. Experts also highlighted the need for prudent fiscal and monetary policies to ensure that Pakistan’s foreign exchange reserves remain on a positive trajectory.
Overall, the rise in forex reserves underscores the resilience of Pakistan’s financial system and its capacity to navigate economic challenges, offering a glimmer of hope for sustained economic recovery in the months ahead.
