SBP’s forex reserves rise by $24m to $9.53bn as of Sept 20

KARACHI: Pakistan’s foreign exchange reserves held by the central bank increased by $24 million to $9.534 billion in the week ending September 20, the State Bank of Pakistan (SBP) reported on Thursday.

The country’s foreign exchange reserves rose by $47 million to $14.873 billion. The reserves of commercial banks increased by $23 million to $5.340 billion.The International Monetary Fund’s executive board on Wednesday approved a new $7 billion Extended Fund Facility (EFF) for Pakistan, with the first tranche of $1.1 billion likely to be released soon.

The IMF may disburse the second instalment within this fiscal year.According to reports, SBP Governor Jameel Ahmed said that Islamabad would receive the first tranche of $1.1 billion, adding that the country has fulfilled all demands of the global lender.

Foreign reserves remained stable due to improvements in the current account balance, despite external debt repayments.After three months of deficits, Pakistan’s current account swung back to a surplus in August, mostly because of strong remittances.

Data from the State Bank of Pakistan on Wednesday showed that the country recorded a current account surplus of $75 million, compared with a deficit of $246 million in the previous month and a shortfall of $152 million in August 2023.

In the first two months of FY2025, Pakistan posted a current account deficit of $171 million, down 81 per cent from a year ago.Remittances increased to $2.9 billion in August, up 40 per cent from a year earlier. These inflows rose by 44 per cent to $5.9 billion in July-August FY25. However, remittances fell by 2.0 per cent on a month-on-month in August.