SBP forex reserves surge by $1.17b, reach 2.5-year high

Increase follows receipt of IMF's first tranche of $1.03 billion as part of the $7 billion EFF approved last month

The foreign exchange reserves held by the State Bank of Pakistan (SBP) saw a significant rise of $1.168 billion on a weekly basis, reaching $10.702 billion as of September 27, marking the highest level in 2.5 years, according to data released on Thursday.

The total liquid foreign reserves held by the country now stand at $15.983 billion, with $5.281 billion in net reserves held by commercial banks.

The increase in SBP's reserves follows the receipt of the first tranche of $1.03 billion from the International Monetary Fund (IMF) as part of the Extended Fund Facility (EFF). This marks the first notable increase since SBP's reserves last exceeded $10.7 billion on April 16, 2022.

In the previous week, SBP reserves had seen a modest rise of $24 million. The IMF's inflow came after its Executive Board approved a 37-month, $7 billion EFF for Pakistan last month.

The agreement on the $7 billion EFF, reached on July 12, aims to provide financial assistance to Pakistan in managing its economic challenges and stabilising its foreign exchange reserves.