KARACHI: Pakistan forex reserves rise by $1.18 billion after the government received funds under a commercial loan arrangement, providing a significant boost to the country’s foreign currency position. The latest inflow pushed the foreign exchange reserves held by the State Bank of Pakistan (SBP) above the $18 billion mark, while the country’s total liquid reserves also recorded a substantial weekly increase.
According to the latest data released by the State Bank of Pakistan, the central bank’s foreign exchange reserves increased by $1.21 billion, rising from $17.11 billion to approximately $18.33 billion. The increase followed the receipt of commercial loan funds by the government.
The fresh inflow has strengthened the SBP’s foreign currency holdings at a time when Pakistan continues to manage its external financing requirements and maintain stability in its foreign exchange position.
Pakistan Forex Reserves Rise by $1.18 Billion as SBP Holdings Cross $18 Billion
The latest figures show that the SBP’s reserves increased to $18.3282 billion, compared with $17.11 billion recorded previously. The rise represents a major improvement in the central bank’s reserve position and provides additional foreign currency liquidity for managing the country’s external payment obligations.
The increase in reserves comes after the government received funds through a commercial borrowing arrangement. Such inflows can provide additional support to Pakistan’s balance of payments and strengthen the country’s capacity to meet foreign currency requirements.
The increase also takes the central bank’s reserves beyond the important $18 billion threshold, marking a notable improvement in the country’s official foreign exchange position.
Commercial Banks See Decline in Foreign Exchange Holdings
While the State Bank recorded a strong increase, foreign exchange reserves held by commercial banks moved in the opposite direction. Commercial banks’ reserves declined by $23 million during the period under review, falling to $5.3876 billion.
Although the decline in commercial banks’ holdings partially offset the increase recorded by the SBP, the overall reserve position of the country still improved significantly because of the larger inflow into the central bank.
The latest figures underline the dominant contribution of the government’s commercial loan receipt to the weekly improvement in Pakistan’s total foreign exchange reserves.
Pakistan’s Total Liquid Reserves Reach $23.71 Billion
Official data showed that Pakistan’s total liquid foreign exchange reserves increased by $1.188 billion, reaching approximately $23.7158 billion. The total reserves consist of $18.3282 billion held by the State Bank of Pakistan and $5.3876 billion held by commercial banks.
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The combined reserve figure represents a considerable improvement from the previous level and reflects the impact of the latest commercial financing inflow. The increase is particularly significant for Pakistan as the country continues to focus on strengthening its external account, meeting international payment obligations and maintaining adequate foreign currency liquidity.
Commercial Financing Provides Boost to Foreign Exchange Position
The latest reserve increase comes amid Pakistan’s continued efforts to secure external financing and improve its economic stability.Foreign exchange reserves are closely monitored because they provide an important buffer for meeting external obligations, including imports and debt-related payments. Higher reserves can also improve market confidence and provide greater flexibility in managing foreign exchange pressures.
The latest commercial loan receipt has therefore provided a timely boost to Pakistan’s reserve position.However, the sustainability of the improvement will depend on future foreign currency inflows, external debt repayments, import requirements and the country’s overall balance-of-payments position.
For now, the latest data shows a clear improvement, with Pakistan forex reserves rise by $1.18 billion and total liquid reserves climbing to $23.7158 billion following the government’s commercial loan receipt.
