Karachi, October 12, 2023 – The State Bank of Pakistan (SBP) reported a notable weekly increase of $31 million in its foreign exchange reserves, according to official data released on Thursday.
This boost brought the SBP’s official foreign exchange reserves to $7.647 billion for the week ending on October 6, 2023, as compared to $4.616 billion the previous week, ending on September 28, 2023.
In contrast, the country’s foreign exchange reserves, which include the SBP’s reserves and those held by commercial banks, remained unchanged at $13.03 billion compared to the previous week.
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It’s important to note that Pakistan’s foreign exchange reserves have significantly declined from their peak level, which was reached in August 2021 when they stood at a robust $27.2 billion. This substantial decrease has raised concerns about Pakistan’s ability to effectively meet its import requirements and maintain stability for the Pakistani rupee in the international currency market.
The foreign exchange reserves held by commercial banks saw a modest decline of $31 million, decreasing to $5.383 billion by the week ending on October 6, 2023, compared to $5.414 billion in the prior week.
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The performance of foreign exchange reserves is closely monitored by both financial experts and the government, as these reserves play a crucial role in ensuring the stability of a country’s currency and its ability to meet its international financial obligations. The ongoing efforts to strengthen foreign exchange reserves are vital to addressing Pakistan’s economic challenges and maintaining a resilient financial landscape.
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