The foreign exchange reserves held by the State Bank of Pakistan (SBP) experienced a marginal increase of $15.8 million, or 0.17% week-on-week, reaching a total of $9.11 billion during the week ending on May 31, 2024, according to data released by the SBP on Thursday.
The central bank did not specify the cause of this rise. Conversely, the country’s total reserves saw a decline, decreasing by $99.8 million, or 0.70% week-on-week, bringing the total to $14.22 billion.
This decrease was primarily due to a significant drop in reserves held by commercial banks, which fell by $115.6 million, or 2.21% week-on-week, to $5.11 billion.
Notably, the SBP-held reserves have seen a substantial increase of $4.64 billion, or 103.95%, in the current fiscal year. This impressive boost follows Pakistan securing a Stand-By Arrangement (SBA) of approximately $3 billion with the International Monetary Fund (IMF) by the end of June last year.
The SBA played a crucial role in unlocking further multilateral and bilateral funding, bolstering the country's foreign exchange reserves.
Additionally, since the beginning of the current calendar year, SBP-held reserves have increased by $888.3 million, marking a 10.8% rise.
Foreign Reserves Overview (in $ millions):
| Foreign reserves held by | May 31, 2024 | May 24, 2024 | Change | % Change |
|---|---|---|---|---|
| State Bank of Pakistan | 9,109.5 | 9,093.7 | 15.8 | 0.17% |
| Net Foreign Reserves Held by Banks | 5,106.1 | 5,221.7 | -115.6 | -2.21% |
| Total Liquid Foreign Reserves | 14,215.6 | 14,315.4 | -99.8 | -0.70% |
