Pakistan’s central bank, the State Bank of Pakistan (SBP), purchased $4.98 billion from the interbank market between June and November 2024 to strengthen its foreign exchange reserves and support debt management efforts, according to the latest data released by the SBP.
In November alone, the SBP acquired $1.151 billion from the currency market, a slight increase from the $1.026 billion purchased in October. A report by Arif Habib Limited highlighted that these interventions resulted in a $2.9 billion rise in the country’s foreign exchange reserves, with the remaining funds directed toward meeting external debt obligations.
As of February 14, the SBP’s reserves stood at $11.20 billion, sufficient to cover over two months of import payments. This marked a modest recovery after three consecutive weeks of decline. However, challenges such as external debt repayments, a widening current account deficit, and a growing trade gap could exert renewed pressure on the reserves in the absence of significant foreign inflows.
On a positive note, upcoming disbursements from the International Monetary Fund (IMF) under the Extended Fund Facility, along with climate resilience funding, are expected to bolster the country’s foreign exchange reserves.
