Pakistan’s Foreign Exchange Reserves Rise by $11 Million

Pakistan’s foreign exchange reserves increased by $11 million in the week ending August 8, the State Bank of Pakistan (SBP) said.

The central bank now holds $14.243 billion, while commercial banks have $5.254 billion. This takes the total liquid foreign exchange reserves to $19.497 billion.

Reserves Recovery After Crisis
This rise comes after last year’s crisis when reserves fell below $4 billion in mid-2023. At the time, default fears grew across the country. Reforms, IMF funding, and higher remittances have since helped the reserves recover.

The current level covers about two months of imports. Experts say this shows stronger financial stability, although debt repayments remain a challenge.

Rupee Gains for Fourth Week
The Pakistani rupee also gained for the fourth straight week. It closed at 282.06 against the US dollar. SBP supported liquidity by injecting Rs 12 trillion into the interbank market through reverse repo operations.

Outlook
The gradual rise in reserves is improving investor confidence and Pakistan’s image with lenders. More reserves mean the country can pay for key imports like oil and machinery without delays.

Strong remittances, better monetary control, and successful talks with lenders — including IMF support — are playing a key role in building financial stability.