| Karachi: Pakistan’s foreign exchange (Forex) reserves have seen a third consecutive week of increases, according to data released by the State Bank of Pakistan (SBP) on March 2.
Read: FDI doubles with inflows from China, Japan: SBP
The central bank has reported that on February 24, foreign currency reserves held by the SBP stood at USD 3.814 billion, marking an increase of USD 556 million (or 17%) compared to USD 3.258 billion recorded on February 17.
Overall, Pakistan’s liquid foreign currency reserves stood at USD 9.267 billion, including net reserves held by commercial banks other than the SBP, which increased by USD 541.4 million over the previous week. Meanwhile, the net reserves held by banks registered a drop of USD 14.2 million during the week and stood at USD 5.453 billion.
The boost in foreign exchange reserves is attributed to the recent commercial loan of USD 700 million extended by the China Development Bank to Pakistan.
Read: SBP hikes interest rate by 300 bps, highest in 3 decades
The increase in reserves bodes well for the Pakistani economy, as it provides stability to the country’s foreign exchange market and builds a cushion against external shocks. It is important to note that Pakistan is currently going through its ninth International Monetary Fund (IMF) review under the Extended Fund Facility (EFF) USD 1.2 billion loan. |
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