The State Bank of Pakistan (SBP) announced on Thursday that its foreign exchange reserves have soared to a 32-month high, reflecting a significant boost in financial stability and foreign inflows.
According to the central bank’s latest weekly report, reserves held by the SBP increased by $131 million, reaching an impressive total of $11.419 billion. This robust rise underscores growing confidence in the country’s economic outlook and improved liquidity.
At the same time, Pakistan’s overall foreign exchange reserves saw an increase of $109 million over the past week, climbing to $16.076 billion. However, reserves held by commercial banks dipped slightly, falling by $22 million to settle at $4.658 billion.
Analysts attribute this surge in reserves to a combination of factors, including inflows from bilateral and multilateral creditors, remittances, and improved export receipts. Additionally, the recent stabilization measures implemented by the government and the central bank have contributed to enhancing investor confidence, paving the way for sustainable economic growth.
The increase in reserves is expected to ease pressure on the local currency, strengthen the balance of payments position, and provide greater resilience against external shocks. Economic experts emphasize the importance of maintaining this momentum, as it will help Pakistan address its long-term fiscal challenges and reduce dependency on external borrowing.
