Pakistan’s Foreign Exchange Reserves Increase by $1.6 Billion Over One Year
The Ministry of Finance has reported a significant increase in Pakistan’s foreign exchange reserves, which have grown by $1.598 billion over the past year. This growth comes alongside a notable appreciation of the Pakistani rupee against the US dollar.
Breakdown of Foreign Exchange Reserves
According to the ministry’s report, the State Bank of Pakistan’s (SBP) reserves increased by $1.53 billion, while commercial banks saw a rise of $68 million in their reserves. As a result, the total foreign exchange reserves now stand at $14.776 billion. Specifically, the SBP holds $9.403 billion, and commercial banks hold $5.373 billion.
Impact of IMF Loan Program
The report also suggests that both foreign exchange reserves and the value of the rupee are expected to increase further following the approval of a new loan program from the International Monetary Fund (IMF).
Rupee Appreciation
In the last year, the Pakistani rupee has appreciated by Rs. 21.13 against the dollar. Currently, one dollar is valued at Rs. 278.51, a decrease from Rs. 299.51 a year ago. This appreciation reflects an improvement in the country’s economic outlook, supported by growing foreign exchange reserves.
Historical Comparison
A year ago, Pakistan’s total foreign exchange reserves were $13.178 billion, with the SBP holding $7.873 billion and commercial banks holding $5.305 billion. The current increase highlights the progress made in stabilizing the country’s financial position.