SBP reserves rise $14.4m despite $1bn Eurobond repayment

April 18, 2024 (MLN): The foreign exchange reserves held by the State Bank of Pakistan (SBP) rose by $14.4 million or 0.18% WoW to $8.05 billion during the week ended on April 12, 2024, according to the data released by the central bank on Thursday.

Interestingly, SBP reserves recorded a weekly increase despite a repayment of $1bn Euro Bond.

"During the week, SBP has executed the repayment of $1bn maturing Pakistan’s International Bond (principal plus interest)," the central bank said.

SBP did not cite the reason for this significant inflow of more than $1bn.

On the other hand, the country's total reserves decreased by $68m or 0.51% WoW to $13.37bn.

This was because the reserves held by commercial banks diminished by $82.4m or 1.53% WoW to $5.32bn.

The South Asian nation is nearing the end of a nine-month, $3bn loan program with the International Monetary Fund (IMF), with the final $1.1bn tranche of the deal likely to be approved later this month.

Pakistan has begun negotiations for a new multi-billion dollar loan agreement to support its economic reform program.

The country has achieved a semblance of economic stability after the 9-month SBA with IMF and is fully committed to entering into an extended program with the Fund to continue on the path of economic growth and development, said Finance Minister Muhammad Aurangzeb.

It is pertinent to mention here that Aurangzeb is leading Pakistan’s delegation in the IMF / World Bank’s 2024 Spring Meetings being held in Washington DC.

In the current fiscal year, total liquid foreign reserves have increased by $4.21bn or 46%.

Meanwhile, the current calendar year has seen an increase of $0.7bn or 5.53%.

Amount in USD Million

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