SBP reserves increase $243mn to reach over 6-month high of $8.27bn

Foreign exchange reserves held by the State Bank of Pakistan (SBP) increased by $243 million on a weekly basis, clocking in at $8.27 billion as of January 19, data released on Thursday showed.

Total liquid foreign reserves held by the country stood at $13.34 billion. Net foreign reserves held by commercial banks stood at $5.07 billion.

The SBP attributed the increase in the reserves to an inflow from the International Monetary Fund (IMF).

“During the week ended on 19-Jan-2024, SBP received IMF tranche under SBA and executed government’s external debt repayments. After accounting for all flows, SBP’s reserves recorded a net increase of US$ 243 million to reach US$ 8,270.5 million,” it said.

Last week, Pakistan’s central bank reserves had decreased by $127 million.

The SBP reserves are now at the highest level since July 14, 2023, when the central bank reserves increased by $4.2 billion to reach $8.73 billion on the back of the first tranche of around $1.2 billion from the IMF after the lender approved $3-billion Stand-By Arrangement (SBA).

The latest increase is one the back of the second tranche of $705.6 million from the IMF under the SBA.

The total disbursement could not reflect in this week’s reserves due to debt repayments, the central bank said.