KARACHI, Sindh: Pakistan forex reserves held by the State Bank of Pakistan surged by USD 3.061 billion to a record USD 21.389 billion in the week ended September 11, SBP data showed.
The central bank attributed the increase mainly to receiving Pakistan’s Eurobond proceeds. SBP reserves had stood at USD 18.328 billion a week earlier, meaning official holdings increased about 16.7% week-on-week.
Pakistan’s total liquid foreign exchange reserves rose by USD 3.075 billion to USD 26.791 billion as of September 11, their highest level in about five years. The total remains below the roughly USD 27.1 billion recorded in September 2021.
Net foreign exchange reserves held by commercial banks increased by USD 14.6 million to USD 5.402 billion from USD 5.388 billion a week earlier, according to SBP figures.
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Arif Habib Limited estimated that the higher reserve stock lifted Pakistan’s import cover to about 3.03 months, based on a three-month average of imports. The estimate marked the first clear move above three months since August 2020.
Prime Minister Shehbaz Sharif welcomed the record level of SBP-held reserves on September 18, calling it a milestone for economic stability, according to a statement from the Prime Minister’s Office. He credited the economic team, remittances, exports and financial discipline for strengthening the external position.
The prime minister also praised Finance Minister Muhammad Aurangzeb, SBP Governor Jameel Ahmad and overseas Pakistanis, while saying improved reserves would strengthen the country’s capacity to meet external payments.