SBP foreign exchange reserves reach 2.5-year high

Pakistan’s foreign exchange reserves held by the State Bank of Pakistan (SBP) increased by $215 million over the past week, reaching $11.02 billion as of 11 October 2024, the highest level in 2.5 years, according to data released on Thursday.

Total liquid foreign reserves in the country stood at $16.11 billion, with commercial banks holding $5.09 billion. The SBP did not specify the reason for the rise, but recent inflows from the International Monetary Fund (IMF) have contributed to the boost.

“During the week ended on October 11, SBP reserves increased by US$ 215 million to US$ 11,022.7 million,” the central bank said in a statement. This is the highest reserves figure since April 1, 2022, when the reserves last exceeded $11 billion.

Finance Minister Muhammad Aurangzeb recently projected a positive economic outlook, stating that the reserves would soon exceed $11 billion.

“This means we are going to have roughly 2.5 months of import cover,” Aurangzeb said during an event hosted by the China Chamber of Commerce in Pakistan.

He added that the government is moving towards stabilising the economy, addressing delays such as dividend remittances to Chinese companies.

The increase in reserves follows Pakistan’s receipt of $1.03 billion from the IMF as part of the 37-month, $7 billion Extended Fund Facility (EFF), approved by the IMF Executive Board in July 2024.