Islamabad, Feb 28: Pakistan’s foreign exchange reserves held by the State Bank of Pakistan (SBP) recorded a slight increase of $21 million in the latest weekly report. According to SBP’s official data, as of February 21, the central bank’s reserves stood at $11.222 billion, reflecting a modest gain from $11.201 billion recorded on February 14.
The rise in reserves comes after a period of decline attributed to external debt repayments, which saw a reduction of nearly $250 million in early February. The latest increase marks the second consecutive weekly recovery this month, signaling a potential stabilization in the country’s foreign exchange reserves.
Total Liquid Reserves and Bank Holdings
Pakistan’s total liquid foreign exchange reserves, which include holdings of commercial banks alongside SBP’s reserves, stood at $15.925 billion. However, this represents a decline of $22 million compared to the previous week, indicating fluctuations in overall liquidity.
Meanwhile, net foreign exchange reserves held by commercial banks fell to $4.703 billion, reflecting a week-on-week decrease of $44 million. This drop suggests that financial institutions are adjusting their holdings in response to ongoing market dynamics and economic conditions.
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Economic Outlook and Future Projections
Despite recent debt repayments, the slight increase in SBP-held reserves offers a positive signal for economic stability. Pakistan’s foreign exchange reserves remain under pressure due to import payments, debt servicing obligations, and external financing challenges. However, the government is actively pursuing economic reforms and financial inflows, including remittances, exports, and international loans, to improve liquidity.
Experts believe that sustained inflows from multilateral organizations, improved export performance, and continued foreign investments could help bolster Pakistan’s reserves in the coming months. The Pakistani rupee’s performance, global oil prices, and external trade conditions will also play a crucial role in shaping future trends.
With the next SBP update expected in the coming weeks, analysts will closely monitor whether the recent upward trend in reserves can be sustained amid ongoing economic challenges.
