A surprise increase in overall Pakistan foreign exchange reserves

A surprise increase in overall Pakistan foreign exchange reserves

Pakistan's foreign exchange reserves exhibited a noteworthy increase, despite a $3.1 million decline in the State Bank's holdings, resulting in a total of $7.64 billion.

This data, as reported by the Central Bank, shows that the State Bank of Pakistan's foreign exchange reserves experienced a weekly reduction of $3.1 million, bringing the total to $7.64 billion by October 6.

In a broader context, Pakistan's overall foreign exchange reserves reached $13.03 billion, with contributions of $5.39 billion coming from commercial banks. While the Central Bank has not provided a specific reason for this increase in foreign exchange reserves, one plausible explanation could be the surge in remittances from overseas Pakistanis during September. The other cloud be the deposits by money exchange companies in the national banks.

By the end of the week on October 6, 2023, the State Bank of Pakistan's reserves saw a decrease of $31 million, resulting in the central bank's reserves amounting to $7.64 billion.

It's important to note that the State Bank's rise in foreign exchange reserves can be attributed to various sources. In July, Pakistan received a substantial $1.2 billion installment from the International Monetary Fund (IMF), and an additional $3 billion was secured from other creditors, including Saudi Arabia and the United Arab Emirates. This financial influx followed the approval of a standby arrangement.