SBP forex reserves rise to $11.15bn

KARACHI: Pakistan’s central bank foreign exchange reserves increased by $49 million to $11.15 billion during the week ended March 14, the State Bank of Pakistan (SBP) reported on Thursday.

The total liquid foreign reserves held by the country increased by $87 million to $16.02 billion. The reserves of commercial banks also rose by $38 million to $4.87 billion.The SBP did not specify the reasons behind the slight increase in its reserves. However, the improvement in the current account balance, supported by remittances and the SBP’s dollar purchases from currency markets, contributed to the rise in reserves.

During the first eight months of this fiscal year, Pakistan recorded a current account surplus of $691 million. Nevertheless, there was a minor deficit of $12 million in February.Remittances from overseas workers surged by 33 percent, totaling $24 billion during the July-February period of FY25.

These latest foreign exchange numbers come as Islamabad aims to finalise a staff-level agreement with the International Monetary Fund (IMF) following the completion of the first review of the $7 billion loan programme.

The IMF has indicated that the country is making progress toward receiving the second $1 billion tranche of the Extended Fund Facility (EFF) secured last year.According to reports, a $100 million Saudi oil facility is expected to commence this month.

This $1.2 billion oil facility will be available to Pakistan for twelve months, lasting until February 2026. Additionally, Pakistan has so far secured $6 billion from international creditors from July to February FY25.