Pakistan’s Foreign Exchange Reserves Reach Historic High: State Bank Reserves Cross $21 Billion, Total Reserves Exceed $26.5 Billion
KARACHI:Foreign exchange reserves of Pakistan have reached new highs, the country’s foreign exchange reserves have expanded to an unprecedented level of $26.5 billion and the foreign exchange reserves of State Bank of Pakistan (SBP) have reached an unprecedented level of $21 billion for the first time in the history of Pakistan.
The official figures from the central bank showed that the remarkable growth was driven by the inflow of $3 billion from the issuance of Eurobonds, and by strategic purchases of dollars on the open market. The inflows have been able to successfully surmount the historic $21 billion mark in SBP’s reserves.
Three times as many months of import cover and three years of turnaround.
Total national foreign exchange reserves (including those of the commercial banks) have now reached $26.5 billion. For this reason, for the first time in five years, Pakistan has been able to hold foreign reserves of more than three months of total imports.
The financial analysts remarked on the “wonderful macroeconomic turnaround” while recalling the critical level of low SBP reserves in 2023 which stood at $3 billion. During the three-year period, the central bank has singlehandedly been increasing its reserves from $3 billion to more than $21 billion.
This is the stability that the Pakistani Rupee is seeing today.
According to economic experts, this unprecedented foreign exchange surplus will play a vital role in keeping the Pakistani rupee stable for a while in the near future.