The foreign exchange reserves held by the State Bank of Pakistan (SBP) increased by $215 million during the week ending on October 11, 2024, bringing the total to $11.02 billion, according to data released on Thursday. This marks the highest level in over 2.5 years, with reserves last surpassing $11 billion in April 2022.
The total liquid foreign reserves for Pakistan stood at $16.11 billion, with commercial banks holding $5.09 billion. Although the SBP did not provide a specific reason for the increase, the rise in reserves follows last week’s $106 million gain.
Finance Minister Muhammad Aurangzeb recently indicated that the country’s economy is improving, expecting foreign reserves to reach $11 billion within two weeks. He noted that this progress would help maintain around 2.5 months of import cover, moving closer to the global standard of three months.
The boost in reserves is partly attributed to inflows from the International Monetary Fund (IMF). Last month, Pakistan received its first tranche of $1.03 billion under the IMF’s 37-month, $7 billion Extended Fund Facility (EFF). The agreement for the EFF was finalized in July.
