Forex reserves soar by $31m, climb to $9.1b M Haris

KARACHI: Pakistan’s central bank announced on Thursday that the country’s foreign exchange reserves climbed to $9.1 billion, marking a modest 0.3% increase compared to the previous week.

According to the latest update from the State Bank of Pakistan (SBP), foreign currency reserves rose by $31 million to reach $9,134.7 million by the week ending June 14, 2024, up from $9,103.3 million the previous week. Commercial banks held an additional $5,279.9 million in foreign currency reserves, bringing the total liquid reserves for the country to $14,414.6 million. The SBP did not specify the reasons behind the uptick in reserves.

In recent weeks, the SBP has been gradually increasing its reserves, likely through purchasing US dollars in the local currency market, where supply has outpaced demand for import payments and other needs.

Pakistan’s foreign exchange reserves have consistently exceeded $9 billion in recent weeks, providing enough coverage for nearly two months’ worth of imports and contributing to the stability of the Pakistani rupee against the US dollar.

The surge in workers’ remittances, which reached a record high of $3.24 billion in May 2024, has been a crucial source of foreign exchange inflows. Additionally, earnings from exports have shown some improvement, contributing positively to the country’s foreign exchange reserves.