SBP forex reserves rise by $119m to $9.27bn

KARACHI: Pakistan’s foreign exchange reserves held by the central bank increased by $119 million to $9.27 billion in the week ending August 9, the State Bank of Pakistan said on Thursday.

The country’s foreign exchange reserves rose by $173 million to $14.645 billion. The reserves of commercial banks increased by $54 million to $5.373 billion.SBP Governor Jameel Ahmad said in a statement on Wednesday that the country’s economic indicators have improved. Inflation significantly decreased to 11.1 per cent in July this year, down from 28.3 per cent in July 2023.

He highlighted the country’s previous struggles with macroeconomic indicators, noting that the current account deficit, which was $17.48 billion in FY22, had been reduced to $3.2 billion in FY23, and further to $0.68 billion in FY24.

Foreign remittances have now increased to $30.25 billion in FY24 from $27.33 billion in FY23. The governor also noted that the situation regarding foreign reserves has improved, with reserves rising to $9.3 billion despite ongoing debt repayments.Also, there have been no import restrictions, and IT exports have risen significantly. These improvements, he emphasized, bode well for the country’s economy.