Data released on Thursday reveals that the State Bank of Pakistan (SBP) witnessed a weekly increase of $31 million in its foreign exchange reserves, reaching a total of $7.64 billion as of October 6. The country’s overall liquid foreign reserves amounted to $13.03 billion, with commercial banks holding $5.39 billion in net foreign reserves. The central bank did not specify the exact reason for this increase.
The SBP reported, “During the week ending on October 6, 2023, SBP’s reserves increased by $31 million to $7,646.7 million.”
In the previous week, Pakistan’s central bank reserves had declined by $21 million. Notably, in July of this year, Pakistan’s reserves received a significant boost when the country received an initial installment of approximately $1.2 billion from the International Monetary Fund (IMF) after the approval of a new $3-billion Stand-By Arrangement. Additionally, inflows from Saudi Arabia and the UAE contributed to this increase.
However, the central bank’s reserves have been under pressure due to debt repayments, an increase in import payments following the relaxation of restrictions, and a lack of fresh inflows.
