Pakistan’s foreign exchange reserves increased significantly by $31 million, the State Bank of Pakistan (SBP) said in a statement on Thursday.The increase from $14.384 billion the week before on June 7, 2024, to $14.415 billion for the week ending on June 14, 2024, represents the total reserves.
The official foreign exchange reserves of the SBP saw a notable increase, increasing by $32 million to close the week at $9.135 billion. Compared to the $9.103 billion recorded the week before, this represents an improvement. The country’s ability to meet its international obligations, maintain the value of the local currency, and maintain economic stability is all demonstrated by the increase in SBP’s reserves.
Conversely, there was a minor decrease in the foreign exchange reserves that commercial banks possessed. By June 14, 2024, the reserves had decreased by $1 million, from $5.281 billion one week earlier to $5.28 billion. Even though this decline is small, it illustrates how reserves in the banking industry are subject to fluctuations due to a variety of reasons, such as market activity and consumer withdrawals.
A number of variables, including increased remittances from Pakistanis living abroad, export revenue, and foreign direct investments, are responsible for the increase in SBP’s reserves. Furthermore, the SBP’s most recent efforts to increase foreign exchange inflow have begun to bear fruit.
This increase in reserves is seen favorably by market analysts and economists as a boost for Pakistan’s economy. It boosts investor confidence while acting as a safety net against outside economic shocks. Maintaining and increasing the central bank’s reserves is essential to controlling the nation’s external debt and guaranteeing the stability of the Pakistani rupee.
Even though it is significant, the modest decline in commercial bank reserves does not negate the general upward trend. Experts predict that in the upcoming months, the nation’s foreign exchange reserves will probably increase even more as a result of the central bank’s ongoing initiatives to boost the economy and draw in foreign capital.The rise in Pakistan’s foreign exchange reserves is a comforting indication of improvement as the country continues to navigate its economic difficulties.
