Foreign exchange reserves increased by $1.58 billion: Ministry of Finance

Pakistan's foreign exchange reserves held by the State Bank of Pakistan (SBP) and commercial banks jumped by $1.598 billion in the fiscal year 2023-24, according to a report issued by the Ministry of Finance.

The report shared on Tuesday stated that the local currency became stable during the year and its value increased to Rs21.13 against the US dollar.

“The foreign exchange reserves holding SBP increased by $1.53 billion in a year while commercial banks held $60.80 million reserves,” the report read.

The total foreign exchange reserves reached Rs14.76 billion, according to the report. 

The Finance Ministry data said that the expected bailout programme of the International Monetary Fund (IMF) will assist in enhancing the country's foreign exchange reserves.

Currently, the central bank holds $9.403 billion in reserves, while commercial banks have $5.373 billion in reserves.

The ministry report claimed the cumulative reserves of Pakistan were $13.17 billion, including $7.873 billion of state bank and $5.350 million in FY2023-24.

Despite the increase in foreign exchange reserves, Pakistan needs external financing to fulfil the pre-conditions of the IMF. 

The cash-strapped country is attempting to arrange $4 billion through the commercial bank and another $1 billion in international bonds.

With this borrowing, Pakistan’s reserves are estimated to grow about $19-20 billion by the end of the current fiscal year.