Key Points
- State Bank reserves increased by $15 million in the week ended October 2.
- Total foreign exchange reserves reached $26.797 billion, including over $5 billion held by commercial banks.
- Central bank reserves have risen from $17.03 billion in late July.
ISLAMABAD: Pakistan’s foreign exchange reserves rose by $15 million to $21.453 billion in the week ended October 2, taking the country’s total reserves to $26.797 billion, according to data released by the State Bank of Pakistan (SBP).
The central bank’s reserves increased from $21.439 billion a week earlier, while commercial banks held $5.343 billion in foreign exchange reserves.
The latest increase follows a substantial improvement in the central bank’s reserve position over the past two months. SBP-held reserves stood at $17.03 billion in the week ended July 24, rising by about $4.42 billion since then.
Stronger remittances
In September, the government described the reserves reaching $21.4 billion as a historic high.
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The Prime Minister’s Office attributed the improvement to stronger remittances from overseas Pakistanis, growth in services exports, an improved current account position and fiscal discipline.
It also said the central bank’s purchase of foreign exchange rather than additional external borrowing supported the increase. The SBP had reduced its outstanding foreign exchange-related obligations.
Foreign exchange reserves help a country finance imports, meet external debt repayments and manage pressure on its currency. The central bank’s holdings provide a buffer against external payment requirements.
Despite the recent gains, sustaining reserve growth remains important for Pakistan as it manages external financing needs and seeks to strengthen its economic resilience.
Weekly changes can reflect foreign exchange purchases, external debt payments and other inflows and outflows. The longer-term trend is more significant than a single week’s movement.
