State Bank of Pakistan’s forex reserves reach 28-month high of $10.7 billion

An installment from the IMF has boosted the State Bank of Pakistan’s foreign exchange reserves to over $10 billion, marking the first time in 28 months.

During the week ending on September 27, the central bank’s reserves saw a significant increase of $1.168 billion to $10.7 billion, a level last seen on June 24, 2022

This boost is primarily attributed to the receipt of $1.03 billion from the International Monetary Fund (IMF) under the $7 billion Extended Fund Facility (EFF).

The central bank received the first tranche of $1.03 billion (SDR 760 million) on Monday, September 30, 2024.

Pakistan’s total liquid foreign reserves have reached $15.98 billion. This includes $10.7 billion held by the State Bank of Pakistan (SBP) and $5.28 billion held by commercial banks.

Speaking at a banking conference earlier, the central bank chief highlighted that the recent IMF disbursement had eased pressure on the rupee, ensuring a smooth supply of dollars in the market.

"Overseas workers' remittances have increased, and the supply of dollars has improved," Jameel Ahmed, Governor SBP, noted adding the decline in inflation had positively impacted monetary policy.

The governor expressed satisfaction over the government’s fiscal situation, which he said had also improved.