The State Bank of Pakistan (SBP) witnessed a significant increase in its foreign exchange reserves this week. According to data released on Thursday, the reserves surged by over $1.1 billion in just seven days. This boost raised SBP’s reserves to $10.7 billion, marking the highest level since April 2022.
The main driver of this increase was the $1.027 billion loan tranche from the International Monetary Fund (IMF). This loan was part of the IMF’s 37-month Extended Fund Facility (EFF) worth $7 billion. The loan was issued last week and quickly reflected in the central bank’s reserves.
This positive development was highlighted by Arif Habib Limited (AHL), a leading brokerage firm. AHL emphasized that the reserve levels are critical for stabilizing Pakistan’s economy and ensuring sufficient foreign currency to meet international obligations.
Israel Bombardment Causes 86% Decline in Gaza GDP: IMF
SBP’s Report
The SBP’s data showed that on September 27, reserves stood at $10.702 billion, up from $9.534 billion on September 20. The $1.168 billion increase provided much-needed relief to Pakistan’s foreign exchange position, which has been under pressure in recent months.
The surge in reserves will help Pakistan in maintaining economic stability and fulfilling its international financial commitments. This development also signals progress in the country’s efforts to restore financial credibility following support from the IMF.
With reserves at this level, the central bank is in a stronger position to support the national currency and manage inflationary pressures.
Follow us on Google News, Instagram, YouTube, Facebook,Whats App, and TikTok for latest updates
