SBP reserves jump to 4-year-high of $17B after IMF, Panda Bond inflows

State Bank of Pakistan's foreign exchange reserves have risen to $17.08 billion by May 15, the highest level since February 2022.

The central bank said on Thursday the increase was driven mainly by inflows from the International Monetary Fund (IMF) and proceeds from Pakistan's Panda Bond.

The total reserves now stand at $22.6 billion, with commercial banks holding the remaining $5.51 billion. The weekly gain of $1.21 billion was one of the sharpest in recent months.

What drove the increase in SBP reserves?

The increase in SBP reserves was driven mainly by IMF inflows.

The $1.32 billion came under the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF). The IMF Executive Board approved the disbursement earlier this month after the completion of the third review under the EFF and RSF programs.

Proceeds from Pakistan's Panda Bond issuance also boosted the reserves.

The disbursement is expected to push SBP-held reserves toward the central bank's target of $18 billion by June 2026.

When were Pakistan's reserves last this high?

The SBP's reserves of $17.08 billion are the highest since February 11, 2022, when they stood at $17.10 billion. Reserves had fallen sharply through 2022 and 2023 before recovering.

Total liquid reserves of $22.59 billion are also the highest in over three years. The level was last seen around the week ending March 4, 2022, when total reserves stood at $22.67 billion.