Karachi, December 19, 2024 – The State Bank of Pakistan (SBP) has announced an increase in the country’s total liquid foreign exchange reserves, which now stand at $16.633 billion as of December 13, 2024. This marks a modest rise of $32 million from the previous week’s level of $16.601 billion as reported on December 6, 2024.
In its latest weekly update, the SBP highlighted that the central bank’s own reserves grew by $32 million, reaching $12.082 billion by December 13, 2024. This uptick reflects improved inflows and better management of external resources. However, compared to the previous week’s $12.51 billion, this level still signals a gradual recovery rather than a robust surge.
Foreign exchange reserves held by commercial banks also showed a slight increase, albeit marginal. By the week ending December 13, 2024, reserves held by commercial banks rose to $4.551 billion, a nominal increase from the previous week’s $4.55 billion. This slight uptick underscores the ongoing challenges faced by the financial sector in maintaining and boosting reserve levels amid fluctuating external conditions.
The increase in forex reserves is a positive development for Pakistan, particularly in the context of economic pressures stemming from external debt obligations, volatile global markets, and the need to stabilize the Pakistani rupee. A healthy level of foreign exchange reserves is crucial for ensuring the country’s ability to meet its import requirements and manage foreign debt repayments.
While the rise in reserves is encouraging, analysts stress the importance of sustained inflows from exports, remittances, and foreign direct investments to bolster the reserve position further. The SBP’s proactive measures, including exchange rate management and policy adjustments, have played a role in stabilizing reserves in recent months. However, challenges remain due to ongoing geopolitical tensions and global economic uncertainties.
As Pakistan continues its efforts to strengthen its economic fundamentals, maintaining and growing foreign exchange reserves will remain a priority for the SBP. The coming weeks and months will be critical in determining whether this positive trend can be sustained in the face of economic headwinds.