As per the data released by the State Bank of Pakistan (SBP) on Thursday, the foreign exchange reserves kept by the central bank increased 0.1 percent on a weekly basis.
The foreign currency reserves held by the SBP were reported at $12,820.4 million on September 11, up $13 million from $12,807.8 million in the previous week. No justification for raising reserves was cited by the central bank.
On the whole, the country’s liquid foreign-currency reserves, including net reserves kept by non-SBP banks, stood at $19.959 million. Bank-held net reserves amounted to $7,138.6 million.
On 9 July last year, Pakistan received the first $991.4 million loan tranche from the International Monetary Fund (IMF), which helped strengthen the reserves. The IMF released the second loan tranche of approximately $454 million in late December.
In December 2019, due to inflows from multilateral lenders, including $1.3 billion from the ADB, foreign exchange reserves exceeded the $10-billion mark.
In the current fiscal year foreign investment of over $3 billion in the debt market also played an important role in the increasing reserves of foreign currency.
Previously, the reserves had spiraled downward, dipping below the $7-billion mark, creating doubt about Pakistan’s ability to fulfil its funding needs. Financial support from the United Arab Emirates (UAE), Saudi Arabia and other friendly nations did, however, help shore up foreign reserves.