The State Bank of Pakistan (SBP) has recorded a significant rise in its foreign exchange reserves, which have crossed the $10 billion mark, marking a two-and-a-half-year high. This increase follows the disbursement of a loan tranche from the International Monetary Fund (IMF).
On September 25, the IMF’s Executive Board approved a 37-month Extended Fund Facility (EFF) for Pakistan, amounting to SDR 5.32 billion (approximately $7 billion). As part of this agreement, the IMF released the first tranche, worth SDR 760 million (about $1 billion). This resulted in Pakistan receiving $1.03 billion, which significantly boosted its foreign exchange reserves.
The SBP’s weekly report, released on Thursday, confirmed that Pakistan’s total liquid foreign reserves increased by $1.11 billion, reaching $15.983 billion as of September 27, 2024. This marks the highest level of reserves since June 2022. The SBP’s reserves specifically grew by $1.168 billion to reach $10.702 billion, the highest since April 2022, thanks to the IMF inflow.
However, foreign reserves held by commercial banks saw a slight decline, dropping by $58 million to $5.281 billion.
Economists view this surge in reserves as a positive sign for Pakistan’s economy, improving its financial stability and providing a buffer against external pressures. Despite significant external debt obligations, the SBP’s reserves are expected to reach $13 billion by the end of FY25, with debt rollovers and repayments already planned.
