The foreign exchange reserves held by the State Bank of Pakistan (SBP) increased by $25 million on a weekly basis, reaching $8 billion as of April 26, according to data released on Thursday.
Despite this modest increase, the country’s total liquid foreign reserves, including holdings in commercial banks, remained at $13.3 billion, with net foreign reserves held by commercial banks totaling $5.3 billion.
While the central bank did not specify a reason for the uptick, the slight increase comes after a recent dip.
Last week, the central bank’s reserves had declined by $74 million, causing them to fall below the $8 billion mark.
This decline had raised concerns about the stability of Pakistan’s foreign exchange position.
Meanwhile, Pakistan’s financial stability received a boost from the International Monetary Fund (IMF), which disbursed $1.1 billion in the final tranche of the $3 billion Stand-By Arrangement (SBA) on Tuesday.
This funding follows approval by the IMF’s Executive Board and is expected to be reflected in the SBP’s reserves for the week ending May 3, 2024.
Despite these recent inflows, Pakistan faces ongoing challenges in maintaining a robust foreign exchange reserve.
The country is heavily reliant on external financing, and fluctuations in reserve levels can impact economic stability.
As the central bank works to stabilise its reserves, the broader economy remains sensitive to changes in external funding and currency exchange rates.
