Pakistan's central bank, the State Bank of Pakistan (SBP), witnessed a slight increase in its foreign exchange reserves, rising by $13.6 million or 0.18% during the week ending on October 27, 2023. This uptick brought the SBP's total foreign exchange reserves to $7.51 billion, contributing to the nation's economic stability.
However, it's essential to note that the country's overall reserves experienced a minor dip of $79 million or 0.62% during the same week, resulting in total reserves of $12.58 billion. Commercial banks in Pakistan saw a reduction of $92.6 million or 1.79% in their reserves, which now stand at $5.07 billion.
These fluctuations come on the heels of Pakistan securing a $3 billion Stand-By Arrangement (SBA) from the International Monetary Fund (IMF) towards the end of FY23. This crucial lifeline, alongside $3 billion in bilateral inflows from Arab countries, played a pivotal role in bolstering the nation's dwindling foreign reserves.
As a result, the current fiscal year has witnessed a substantial increase of $3.42 billion or 37.3% in total liquid foreign reserves. However, there's a noticeable slowdown in fresh inflows since the initial boost from the IMF and Arab countries, leading to a gradual decline in total reserves over recent weeks.
Despite these fluctuations, the current calendar year has seen foreign reserves grow by $1.73 billion, marking a 15.96% increase, reflecting Pakistan's ongoing efforts to maintain economic stability.
