Karachi: According to the State Bank of Pakistan’s (SBP) weekly report, which was revealed on Thursday, the country’s foreign exchange reserves climbed by $116 million to a 31-month high of $11.16 billion in the week ending October 25.
The SBP’s foreign exchange reserves increased by more than $2 billion for the fourteenth straight week. The first loan tranche of $1.03 billion from the International Monetary Fund (IMF) was released in late September, which contributed to half of the rise.
However, the steady rise in reserves was unable to stop the Pakistani rupee’s continuous decline in value.
Also read: SBP Governor Highlights Economic Recovery, Targets $13 Billion in Reserves
In the interbank market, the local currency fell Rs0.06 to Rs277.85, its lowest level in five weeks, against the US dollar, continuing its four-day run of declines. In four days, the rupee has lost a total of Rs 0.21.
The central bank did not explain the increase in reserves. However, to pay off the maturing foreign debt and increase the nation’s reserves, SBP Governor Jameel Ahmad recently announced that the bank was purchasing US dollars from local currency markets.
Pakistan’s reserves are expected to reach $13 billion by the end of the current fiscal year on June 30, 2025, according to the SBP governor’s projection.
Also read: SBP’s Annual Report Highlights Economic Recovery and Financial Stability in FY24
The most recent data shows that in the week ending October 25, commercial banks’ foreign exchange reserves decreased by $83.8 million to $4.89 billion. The nation’s total reserves increased by $31.9 million to $16.05 billion as a result.
Syed Hassan Haider, an FX market specialist with Icon Management, stated that the rupee kept losing value due to a steep decline in US dollar inflows. The sale of export earnings on the futures counter has slowed down due to exporters. As worker remittances began to arrive in the first week of November, Haider predicted that the rupee would soon resume its upward trajectory.
