Forex reserves surge to $8.22b as SBP adds another $464m

January 04, 2024 (MLN): The foreign exchange reserves held by the State Bank of Pakistan (SBP) surged for a second consecutive week, showing an increase of $464.1 million or 5.98% WoW to $8.22 billion during the week ended on December 29, 2023, according to the official data released on Thursday.

Last week, the central bank recorded a significant increase of $852.3m.

SBP cited official government inflows for this increase; however, it did not provide any further details.

These inflows are likely the fundings from the Asian Development Bank and the World Bank.

ADB had approved funds worth $659m earlier in December to support Pakistan’s sustainable development, while another $180m in November for water supply improvement and solid waste management.

Moreover, the World Bank approved $350m in December for RISE-II Operation to boost Pakistan’s economic resilience.

During the week ended December 29, the country's total reserves rose by $364.9m or 2.84% WoW to $13.22bn.

The reserves held by commercial banks diminished by $99.2m or 1.95% WoW to $5bn.

Pakistani authorities are scheduled to meet with the International Monetary Fund (IMF) on January 11, 2024, with expectations of the approval of a second tranche of $700m under the current loan program.

To note, towards the end of FY23, the IMF being a last resort saved Pakistan from a sovereign debt default with a $3bn Stand-by Arrangement (SBA).

The initial disbursement of $1.2bn from the IMF, alongside other bilateral inflows gave a substantial boost to the depleting foreign reserves held by the country.

Consequently, in the current fiscal year, total liquid foreign reserves have increased by $4.06bn or 44.33%.

Meanwhile, the current calendar year has seen an increase of $2.38bn or 21.9%.

Amount in USD Million

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