SBP-held foreign exchange reserves climb to $9.153 billion with $51 million increase

The State Bank of Pakistan (SBP) has reported an increase of $51 million in its foreign exchange reserves, which reached $9.153 billion for the week ending August 2. The central bank has not disclosed the source of this inflow.

This rise marks the second consecutive week of increases in the SBP’s reserves, which had previously declined significantly from $9.42 billion on July 12 to $9.027 billion on July 19.

Overall, the country’s total foreign exchange reserves have risen to $14.472 billion, with $5.318 billion held by commercial banks.

The SBP’s reserves are a key indicator of financial stability. By the end of the fiscal year 2024, reserves had increased to $9.389 billion, a substantial rise from $4.44 billion in June 2023. This increase has contributed to stabilising the exchange rate and boosting confidence among foreign investors.

The exchange rate has remained stable for the past four months, attracting significant foreign investment. In this period, inflows into domestic bonds have reached their highest levels since before the Covid-19 pandemic, with $258 million received in July and $230 million in May.

Looking ahead, financial analysts anticipate that the SBP’s reserves could reach up to $13 billion by the end of 2025, supported by new inflows from an IMF loan programme.