Karachi, February 6, 2025 – The State Bank of Pakistan (SBP) has reported a $46 million increase in its foreign exchange reserves for the week ending January 31, 2025.
According to the latest data released by SBP on Thursday, its reserves rose to $11.418 billion, compared to $11.372 billion recorded a week earlier, on January 24, 2025. This increase is seen as a positive development for the country’s financial stability, as SBP continues to manage foreign exchange liquidity.
The rise in SBP’s foreign exchange reserves comes at a time when the reserves held by commercial banks saw a decline. The foreign exchange reserves of commercial banks decreased by $54 million, dropping to $4.624 billion by the week ending January 31, 2025, from $4.68 billion recorded the previous week. This shift highlights a continuing contrast in the performance of reserves held by SBP and commercial banks, with SBP’s reserves growing while commercial banks face a reduction.
Despite the increase in SBP’s reserves, the overall net foreign exchange reserves in the country experienced a slight dip. The net reserves, which include both SBP and commercial bank reserves, fell by $8 million to $16.044 billion for the week ending January 31, 2025. The previous week, the total reserves stood at $16.052 billion. This minor reduction in the net reserves is a result of the decline in commercial bank reserves, offsetting the positive growth in SBP’s own holdings.
SBP continues to play a crucial role in managing the country’s foreign exchange reserves. The recent increase in reserves is seen as a step in the right direction for Pakistan’s financial outlook, particularly as the SBP works towards stabilizing the currency and ensuring sufficient liquidity in the economy. Despite the challenges faced by commercial banks, SBP’s reserves have shown resilience, providing a much-needed buffer against economic pressures.
Overall, while SBP’s foreign exchange reserves have increased, the decrease in commercial bank reserves and the slight drop in total net reserves serve as reminders of the ongoing challenges in managing the country’s foreign exchange position. The SBP’s strategy to bolster reserves is crucial for ensuring the country’s economic stability moving forward.