Pakistan’s Foreign Reserves Skyrocket by $494 Million – What’s Behind the Surge?

• Pakistan’s liquid foreign reserves have risen to $14,573 million as of June 28, 2024.
• The State Bank of Pakistan’s reserves increased by $494 million during the last week of June.
• Commercial banks’ foreign reserves also contributed significantly to the total.

Pakistan’s foreign reserves have seen a substantial boost, reaching $14,573 million as of June 28, 2024, according to a recent report by the State Bank of Pakistan (SBP). This marks a significant increase from previous levels, highlighting the country’s improving economic stability.

The SBP alone reported a rise in its reserves to $9,389.5 million, up by $494 million in just one week. This growth is largely due to substantial inflows from multilateral agencies, which have strengthened the central bank’s financial position.

In addition, commercial banks in Pakistan contributed to the overall reserve increase, holding net foreign reserves of $5,183.5 million as of the same date. The combined efforts of the SBP and commercial banks reflect a robust reserve position, which helps cushion Pakistan against global economic uncertainties.

This rise in foreign reserves is a positive indicator of Pakistan’s fiscal management and its ability to navigate external financial pressures. The improved reserves offer a greater buffer, signaling stability and potential resilience in the face of global economic fluctuations.