Lahore, April 10: Pakistan’s foreign exchange reserves have seen a modest increase, with a rise of $23 million in the week ending April 4, 2025.
The latest data from the State Bank of Pakistan (SBP) shows that the country’s reserves are steadily recovering, offering a glimmer of hope for the economy. This slight uptick is a positive indicator, following months of fluctuating foreign exchange conditions.
Weekly Increase in SBP Reserves
As per the SBP’s report, the foreign currency reserves held by the central bank increased to $10.69 billion, reflecting a $23 million rise from $10.67 billion recorded in the previous week, March 28, 2025. While this increment may appear modest, it is significant in maintaining the country’s financial stability amidst global economic challenges.
Growth in Total Liquid Forex Reserves
In addition to the central bank’s reserves, the total liquid foreign exchange reserves in Pakistan also saw an encouraging increase. For the week ending April 4, 2025, total liquid reserves, including those held by commercial banks, surged by $173 million, reaching $15.75 billion. This indicates a broader positive trend in the country’s overall forex reserves, suggesting that financial institutions are also contributing to the recovery.
Banks’ Contribution to Foreign Reserves
Out of the total reserves, the net reserves held by commercial banks stood at $5.053 billion, up by $149 million from the previous week. This increase highlights the significant role that local banks are playing in bolstering the country’s foreign exchange position alongside the central bank’s efforts.
Read more: Pakistan’s Foreign Reserves Rise by $70 Million
Impact on Pakistan’s Economic Outlook
This weekly growth, although incremental, is vital in supporting Pakistan’s economy, especially considering the challenges faced by the nation in recent years, such as inflation and external debt obligations. With more stable foreign reserves, Pakistan is better positioned to handle its international trade commitments and manage foreign debt repayments.
The modest increase in foreign reserves marks a step in the right direction for Pakistan’s financial health. While the growth is small, it helps in building confidence and offers a much-needed cushion for the country’s economy. As global markets continue to recover, Pakistan’s forex reserves are expected to see further positive trends, contributing to the overall economic recovery.
