Pakistan’s Foreign Exchange Reserves Rise by $43 Million, Rupee Hits Five-Month High
The State Bank of Pakistan (SBP) reported an increase of $43 million in its foreign exchange reserves during the week ending on September 13, bringing the total to $9.509 billion. This boost brings Pakistan’s overall reserves to $14.826 billion, which includes $5.316 billion held by commercial banks.
Although the SBP did not specify the source of this inflow, currency market experts believe that the central bank is purchasing dollars from the interbank market as part of its regular operations. This increase comes amid ongoing efforts to stabilize the economy and boost reserves, especially during a challenging fiscal year.
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Government’s Outlook for SBP Reserves
Despite this improvement, the government remains cautiously optimistic. Officials anticipate the SBP’s reserves to rise to $13 billion by the end of FY25, even as the country faces substantial debt repayments of $26.2 billion during the current fiscal year. However, the expected inflows from the International Monetary Fund (IMF) are not projected to be sufficient to meet this target, raising concerns about future foreign exchange stability.
For more information on Pakistan’s economic plans, check out IMF Updates.
Rupee Gains Against the Dollar
In another positive development, the Pakistani rupee strengthened against the US dollar on Thursday, hitting a five-month high. The State Bank of Pakistan reported that the dollar settled at Rs277.91 in the interbank market, marking a rise of 14 paise from Rs278.04 a day earlier.
The local currency’s gain is seen as a result of the government’s stringent economic policies and efforts to curb dollar outflows, which have contributed to the rupee’s relative stability in recent months.
For more about currency trends, check out Pakistan Banking Insights.
Key Takeaways:
•Pakistan’s foreign exchange reserves increased by $43 million to $9.509 billion as of Sept 13.
•The government aims to raise SBP reserves to $13 billion by the end of FY25 despite hefty debt repayments.
•The Pakistani rupee strengthened to Rs277.91 against the dollar, hitting a five-month high.
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