Karachi, July 4, 2024 – The State Bank of Pakistan (SBP) has announced a notable increase of $494 million in its official foreign exchange reserves for the week ending June 28, 2024, reflecting positive inflows from multilateral agencies.
According to the SBP’s latest figures, the foreign exchange reserves of the central bank climbed to $9.39 billion by June 28, 2024, up from $8.896 billion recorded a week earlier on June 21, 2024. This increase underscores a strengthening of Pakistan’s external financial position amidst ongoing economic developments.
The SBP attributed the rise in reserves primarily to inflows received from various multilateral agencies, signaling confidence and support from international financial entities.
In contrast, the foreign exchange reserves held by commercial banks experienced a decline during the same period. Commercial banks’ reserves decreased by $128 million to $5.183 billion by June 28, 2024, down from $5.311 billion the previous week.
Combining both the SBP’s reserves and those held by commercial banks, Pakistan’s net liquid foreign exchange reserves registered an overall increase of $366 million. As of June 28, 2024, the total net reserves reached $14.573 billion, compared to $14.207 billion recorded at the end of the previous week.
The rise in net reserves is indicative of efforts to stabilize and bolster Pakistan’s external financial buffers, crucial for maintaining stability in foreign exchange markets and meeting international payment obligations.
The SBP’s management of foreign exchange reserves plays a pivotal role in managing currency stability and ensuring sufficient liquidity in the financial system. The increase in reserves is expected to provide a cushion against external economic shocks and support ongoing economic reforms aimed at fostering sustainable growth.
Looking forward, analysts will monitor the trend in forex reserves closely amidst global economic uncertainties and regional geopolitical developments. Sustained efforts to enhance reserves through strategic partnerships and prudent fiscal management will be key in fortifying Pakistan’s economic resilience and attracting foreign investment.
