Foreign exchange reserves held by the SBP climb up by $71 million, reaching a total of $10.40 billion.
Boost in Pakistan's Foreign Exchange Reserves
The State Bank of Pakistan (SBP) witnessed a $71 million boost in its foreign exchange reserves during the week up to May 9, 2025, elevating them to $10.40 billion, figures showed on Thursday. This surge was part of a broader leap in Pakistan's total liquid foreign exchange reserves, which climbed $131 million to reach an impressive $15.61 billion[1].
The increase was thanks to improvements in both SBP and commercial bank holdings. Commercial banks' net foreign reserves swelled by $60 million, landing at a solid $5.21 billion[1][2][3].
The central bank maintained silence on the factors contributing to the increase in FX reserves.
In the week prior, SBP's foreign exchange reserves moved up by $118 million to $10.33 billion[1].
On a noteworthy note, the central bank admitted on Wednesday that it had welcomes the second tranche of Special Drawing Rights (SDR) 760 million, equivalent to a hefty $1.02 billion, from the International Monetary Fund (IMF)[1]. This tremendous amount is expected to be reflected in SBP's foreign exchange reserves for the week ending May 16, 2025[1].
So, next week we can anticipate a substantial increase in total liquid foreign reserves. Given that on May 13, 2025, the SBP collected the second tranche of SDR 760 million from the IMF under the Extended Fund Facility (EFF) program, the total liquid foreign reserves for the week ending May 16, 2025, are projected to amount to approximately $16.637 billion[1][2]. To put this anticipated increase into context:
- Previous Week's Reserves: $15.61 billion (as of May 9, 2025)
- ** IMF Tranche Received:** Approximately $1.023 billion
- Expected Total Reserves for Week Ending May 16, 2025: Approximately $16.637 billion ($15.61 billion + $1.023 billion)
The increase in Pakistan's foreign exchange reserves was partly due to the central bank admitting the receipt of a second tranche of $1.02 billion from the International Monetary Fund (IMF), which will be reflected in the central bank's foreign exchange reserves for the week ending May 16, 2025. With this infusion of funds into the finance sector, the total liquid foreign exchange reserves are projected to reach approximately $16.637 billion for the said week.
