Pakistan’s Foreign Reserves Surge to Over $14 Billion with Inflows from Saudi Arabia, UAE, and IMF
In a significant boost to Pakistan’s economy, the country’s total liquid foreign reserves have surged to US$ 14,065.3 million. This increase is attributed to substantial inflows from prominent sources, including the Kingdom of Saudi Arabia, the International Monetary Fund (IMF), and the United Arab Emirates (UAE). The State Bank of Pakistan (SBP) reported a substantial rise in its reserves, reaching US$ 8,727.2 million as of July 14, 2023.
Key Highlights:
SBP Receives Major Inflows:
The central bank of Pakistan, the State Bank of Pakistan (SBP), received significant financial support from various international entities. The Kingdom of Saudi Arabia contributed US$ 2.0 billion, the IMF provided US$ 1.2 billion, and the UAE extended US$ 1.0 billion.
Strong Reserves Growth:
As a result of these inflows, the SBP’s reserves increased by a notable US$ 4,203 million during the week ending on July 14, 2023, reaching an impressive US$ 8,727.2 million.
Commercial Banks’ Reserves:
The net foreign reserves held by commercial banks in Pakistan stood at US$ 5,338.1 million, contributing to the country’s overall foreign reserves.
Comparative Analysis:
The recent surge in foreign reserves marks a substantial improvement compared to the preceding week’s numbers. On July 07, 2023, Pakistan’s total liquid foreign reserves were at US$ 9,838.5 million. During that period, the central bank held US$ 4,524 million in reserves, while commercial banks held US$ 5,314.5 million.
With the latest inflows from Saudi Arabia, the IMF, and the UAE, Pakistan’s foreign reserves have exceeded the US$ 14 billion mark. This significant boost is expected to bolster the country’s economic stability and provide a cushion for potential challenges. The rise in foreign reserves is a positive indicator of Pakistan’s financial standing, reflecting the confidence of international partners in the country’s economic prospects.