SBP-held foreign exchange reserves cross $12bn for first time in over 2.5 years

Foreign exchange reserves held by the State Bank of Pakistan (SBP) increased by $620 million on a weekly basis, clocking in at $12.04 billion as of November 29, data released on Thursday showed.

Total liquid foreign reserves held by the country stood at $16.62 billion. Net foreign reserves held by commercial banks stood at $4.58 billion.

“The increase is mainly on account of the official inflow of $500 million from Asian Development Bank,” the SBP said.

This brings the SBP reserves to over 2.5-year high. The central bank’s dollar stockpile was recorded above $12 billion last time on March 25, 2022.

Last week, SBP foreign exchange reserves increased by $131 million.

In October this year, the ADB approved a $500-million policy-based loan to support climate change and disaster risk reduction and resilience in Pakistan.

“The Climate and Disaster Resilience Enhancement Program (CDREP) will strengthen Pakistan’s institutional capacity for planning, preparedness, and response; increase inclusive investment in disaster risk reduction and climate resilience; and support the scale-up of disaster risk financing using a risk-layered approach,” the Philippines-based lender said in a statement then.

Last week, the SBP said it had received $500 million from the ADB as proceeds of the loan for the CDREP, saying the proceeds would reflect in the SBP’s foreign exchange reserves for the week ending on November 29.