Karachi, October 19, 2023 – The State Bank of Pakistan (SBP) has reported a noteworthy increase in its weekly foreign exchange reserves, providing a glimmer of positive news amidst concerns about the country’s overall foreign exchange situation.
On Thursday, the SBP released its latest data on liquid foreign exchange reserves, covering the week ending October 13, 2023. According to the report, the foreign exchange reserves of the SBP have risen by $67 million.
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As of the week ending October 13, 2023, the SBP’s foreign exchange reserves reached a total of $7.714 billion, compared to $7.647 billion just a week prior, on October 6, 2023. This increase in the central bank’s reserves is a welcome development, which may help bolster Pakistan’s foreign currency position.
However, in contrast to the SBP’s increase, the country’s overall foreign exchange reserves have faced a decline. The total foreign exchange reserves of Pakistan fell by $117 million during the same period, totaling $12.913 billion by the week ending October 13, 2023, as opposed to $13.03 billion a week earlier.
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It’s important to note that Pakistan’s foreign exchange reserves have witnessed a substantial decrease from their peak level, which was recorded in August 2021 when they stood at a robust $27.2 billion. This significant decline has raised concerns about Pakistan’s capacity to effectively meet its import requirements and maintain stability for the Pakistani rupee in the international currency market.
The report also highlights that foreign exchange reserves held by commercial banks experienced a notable decrease. These reserves fell by $184 million, amounting to $5.199 billion by the week ending October 13, 2023, compared to $5.383 billion in the previous week.
READ MORE: SBP Weekly Forex Reserves Increase by $31 Million
The fluctuating state of Pakistan’s foreign exchange reserves continues to be a matter of concern, as the country grapples with economic challenges and strives to ensure stability in its foreign currency holdings. The increase in SBP’s reserves, although modest, is a positive development that may offer some respite in these challenging times. However, addressing the broader decline in foreign exchange reserves remains a crucial priority for the country’s economic stability.
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