Tag: forex reserves

  • Pakistan’s forex reserves surge by $1.17 billion, reaching highest level since April 2022

    Pakistan’s forex reserves surge by $1.17 billion, reaching highest level since April 2022

    The foreign exchange reserves held by the State Bank of Pakistan (SBP) increased by $1.17 billion in one week.

    Despite the fact that the latest ‘surge’ is due to a loan, the SBP’s reserves are currently at their highest level since April 2022.

    According to data from the central bank for the week ending September 27, Pakistan’s foreign exchange reserves rose by more than 12 per cent as compared to the previous week, hitting $10.7 billion.

    This increase is mainly due to a $1.03 billion loan received from the International Monetary Fund (IMF) under the Extended Fund Facility (EFF) programme.

    Moreover, the country’s net reserves climbed by $1.11 billion, or 7.46 per cent, compared to the previous week, reaching $15.98 billion.

    However, reserves held by commercial banks fell by $58.3 million, or 1.09 per cent, in the same period, now standing at $5.28 billion.

    Since the start of the current fiscal year, SBP-held reserves have grown by $1.31 billion, or 13.98 per cent. In the current calendar year, reserves have increased by $2.48 billion, or 30.17 per cent.

  • World Bank forecasts 7% growth in Pakistan’s remittances for 2024

    World Bank forecasts 7% growth in Pakistan’s remittances for 2024

    Remittance flows to Pakistan are expected to rebound and grow by approximately 7 per cent, reaching $28 billion in 2024, with a further increase of 4 per cent to around $30 billion in 2025, according to the World Bank’s ‘Migration and Development Brief 40’ released on Wednesday.

    In 2023, Pakistan experienced a 12 per cent decline in remittance inflows, dropping to $27 billion, due to weak economic conditions, including a balance of payments crisis. Despite these challenges, Pakistan emerged as one of the top five recipient countries for remittances in 2023.

    “The top five recipient countries for remittances in 2023 are India with an estimated inflow of $120 billion, followed by Mexico ($66 billion), China ($50 billion), the Philippines ($39 billion), and Pakistan ($27 billion),” the report stated.

    Despite the global demand for labour in countries like the USA and those within the OECD, Pakistan’s internal economic struggles caused remittances to drop.

    The World Bank noted that many remittances were likely sent through informal channels in 2023, due to robust labour market conditions in destination countries.

    “Recent economic crises in Pakistan highlighted that delays in reforms not only deterred Foreign Direct Investment (FDI) but also negatively impacted formal remittance flows,” the report added.

    Home remittances play a crucial role in supporting Pakistan’s external account, stimulating economic activity, and supplementing the incomes of remittance-dependent households.

    During the first 11 months of FY24, workers’ remittances recorded an inflow of $27.093 billion, a 7.7 per cent increase compared to $25.146 billion during the same period in FY23.

    The report also revealed that with a share of 8 per cent of GDP, Sri Lanka and Pakistan are tied as the second most remittance-dependent countries in South Asia. Overall, remittances to South Asia grew by 5.2 per cent in 2023, reaching $186 billion, though this growth rate slowed from 12 per cent in 2022.

    This growth was primarily driven by India, which saw a 7.5 per cent increase to $120 billion, supported by strong labour markets in the United States and Europe.

    The slowdown was partly due to reduced outflows from GCC countries, impacted by declining oil prices and production cuts. Remittance flows to South Asia are projected to grow by 4.2 per cent in 2024.

    The World Bank highlighted that the economic conditions in South Asia’s largest recipients—India, Pakistan, and Bangladesh, which collectively receive 91 per cent of the region’s remittances—will be crucial in driving remittance growth.

    However, a weak economic recovery in Pakistan and Bangladesh poses a significant risk, potentially leading migrants to favour informal money transfer channels, thus reducing formal remittance growth.

  • SBP-held foreign exchange reserves rise by $15.8 million to $9.11 billion

    SBP-held foreign exchange reserves rise by $15.8 million to $9.11 billion

    The State Bank of Pakistan (SBP) reported a modest increase in its foreign exchange reserves, rising by $15.8 million or 0.17 per cent week-on-week (WoW) to reach $9.11 billion as of May 31, 2024, according to data released on Thursday.

    The central bank did not provide specific reasons for this increment.

    Conversely, Pakistan’s total reserves saw a decline, falling by $99.8 million or 0.70 per cent WoW to $14.22 billion. This reduction was primarily attributed to a significant drop in reserves held by commercial banks, which decreased by $115.6 million or 2.21 per cent WoW, settling at $5.11 billion.

    Since the start of the current fiscal year, the SBP’s reserves have experienced a substantial increase of $4.64 billion or 103.95 per cent.

    This notable rise is largely due to Pakistan securing the International Monetary Fund’s (IMF) Stand-By Arrangement (SBA) of approximately $3 billion by the end of June last year, which facilitated access to additional multilateral and bilateral funding.

    In the current calendar year, the SBP’s reserves have increased by $888.3 million or 10.8 per cent, reflecting a steady improvement in the country’s financial standing.

  • SBP-held foreign exchange reserves rise to $9.14 billion

    SBP-held foreign exchange reserves rise to $9.14 billion

    During the week ending May 10, 2024, the State Bank of Pakistan (SBP) reported a notable uptick in its foreign exchange reserves, marking an increase of $15.2 million or 0.17 per cent week-on-week (WoW), bringing the total to $9.14 billion.

    This data, released by the central bank on Thursday, underscores a positive trend in the country’s monetary reserves.

    Notably, the SBP did not provide specific insights into the driving factors behind this increase.

    According to a statement issued by the SBP, “During the week ending May 10, 2024, SBP reserves experienced a $15 million increment, reaching $9.14 billion.”

    Simultaneously, Pakistan’s overall reserves recorded a significant rise, climbing by $167.5 million or 1.16 per cent WoW to $14.63 billion.

    This increase encompasses reserves held by commercial banks as well, which surged by $152.3 million or 2.85 per cent WoW to reach $5.49 billion.

    Examining the broader fiscal landscape, the current fiscal year has witnessed a substantial uptick in total liquid foreign reserves, surging by $5.47 billion or 59.68 per cent. Moreover, the ongoing calendar year has seen a notable increase of $1.95 billion or 15.41 per cent.

    This surge in reserves reflects positively on Pakistan’s economic stability and its ability to manage external financial obligations, contributing to investor confidence and fostering a favorable environment for economic growth.

  • SBP-held forex reserves rise by $25 million to reach $8 billion

    SBP-held forex reserves rise by $25 million to reach $8 billion

    The foreign exchange reserves held by the State Bank of Pakistan (SBP) increased by $25 million on a weekly basis, reaching $8 billion as of April 26, according to data released on Thursday.

    Despite this modest increase, the country’s total liquid foreign reserves, including holdings in commercial banks, remained at $13.3 billion, with net foreign reserves held by commercial banks totaling $5.3 billion.

    While the central bank did not specify a reason for the uptick, the slight increase comes after a recent dip.

    Last week, the central bank’s reserves had declined by $74 million, causing them to fall below the $8 billion mark.

    This decline had raised concerns about the stability of Pakistan’s foreign exchange position.

    Meanwhile, Pakistan’s financial stability received a boost from the International Monetary Fund (IMF), which disbursed $1.1 billion in the final tranche of the $3 billion Stand-By Arrangement (SBA) on Tuesday.

    This funding follows approval by the IMF’s Executive Board and is expected to be reflected in the SBP’s reserves for the week ending May 3, 2024.

    Despite these recent inflows, Pakistan faces ongoing challenges in maintaining a robust foreign exchange reserve.

    The country is heavily reliant on external financing, and fluctuations in reserve levels can impact economic stability.

    As the central bank works to stabilise its reserves, the broader economy remains sensitive to changes in external funding and currency exchange rates.

  • Pakistan’s forex reserves fall by $73.5 million in one week

    Pakistan’s forex reserves fall by $73.5 million in one week

    The State Bank of Pakistan (SBP) reported a significant decline in its foreign exchange reserves for the week ending April 19, 2024, attributing the drop to external debt repayments.

    The central bank’s reserves fell by $73.5 million, a 0.91 per cent week-on-week reduction, bringing the total to $7.98 billion.

    This decrease reflects Pakistan’s ongoing struggles to maintain a stable foreign exchange reserve position amid mounting economic pressures.

    The SBP issued a statement explaining the decline, citing debt repayments as the primary reason for the dip. “During the week ended on April 19, 2024, SBP’s reserves decreased by $74 million to $7.98 billion due to external debt repayments,” the statement read.

    Concurrently, the total reserves of Pakistan, which include those held by commercial banks, also fell. The country’s total reserves dropped by $93.2 million, a 0.7 per cent week-on-week decrease, to $13.28 billion.

    Commercial banks’ reserves diminished by $19.7 million, or 0.37 per cent week-on-week, bringing their total to $5.3 billion.

    Last week, the SBP reported a slight increase in its reserves, up by $14.4 million despite a $1 billion Eurobond repayment. However, this week’s decline indicates continued pressure on the country’s foreign exchange reserves.

    In a recent development, the International Monetary Fund’s (IMF) executive board is set to meet on April 29 to discuss the approval of a $1.1 billion funding tranche for Pakistan.

    This funding represents the second and final installment of a $3 billion standby arrangement with the IMF, which was agreed upon last summer to avert a sovereign default.

    The current arrangement with the IMF is due to expire at the end of this month, prompting Pakistan to seek a new long-term and larger loan from the IMF.

    Finance Minister Muhammad Aurangzeb expressed optimism about the country’s foreign exchange reserves, stating that he expects the reserves held by the SBP to rise to around $9–10 billion by the end of the current fiscal year.

    Despite the recent decline, the total liquid foreign reserves have increased by $4.12 billion, or 44.98 per cent, since the beginning of the fiscal year.

    Additionally, the current calendar year has seen an increase of $0.61 billion, or 4.79 per cent.

    The fluctuations in Pakistan’s foreign exchange reserves underscore the country’s ongoing economic challenges and the critical importance of securing international funding to maintain financial stability.

  • SBP’s foreign exchange reserves rise by $18.5 million

    SBP’s foreign exchange reserves rise by $18.5 million

    The State Bank of Pakistan (SBP) saw an increase in its foreign exchange reserves, rising by $18.5 million or 0.23 per cent week over week (WoW), reaching $8.04 billion by the week ending March 29, 2024, according to the latest data released by the central bank on Thursday.

    However, the country’s overall reserves took a dip, decreasing by $48.7 million, or 0.36 per cent of WoW, and settling at $13.38 billion. 

    This decline is attributed to a drop in reserves held by commercial banks, which fell by $67.2 million, or 1.24 per cent of WoW, reaching $5.34 billion.

    It’s important to note that in the current fiscal year, total liquid foreign reserves have increased by $4.22 billion, or 46.06 per cent. 

    Additionally, the ongoing calendar year has seen an increase of $0.71 billion, or 5.57 per cent.

  • Pakistan’s forex reserves surge to $8.02 billion, SBP data shows

    Pakistan’s forex reserves surge to $8.02 billion, SBP data shows

    The latest data released on Thursday revealed a noteworthy surge in the foreign exchange reserves held by the State Bank of Pakistan (SBP), marking an increase of $105 million over the course of a week, reaching a total of $8.02 billion as of March 15.

    In addition to the SBP’s reserves, the total liquid foreign reserves for the country now stand at $13.4 billion, with commercial banks accounting for $5.38 billion of this amount.

    Despite the significant boost, the central bank did not provide specific details regarding the reason behind this increase.

    However, it did report that during the week ending on March 15, SBP’s reserves climbed by $105 million to reach $8,017.9 million, indicating a positive trend.

    The previous week had also witnessed an increase in Pakistan’s central bank reserves, albeit a smaller one, amounting to $17 million.

    In a pivotal development, Pakistani authorities successfully concluded negotiations with the International Monetary Fund (IMF) on the second and final review of the $3 billion Stand-By Arrangement (SBA).

    As per the agreement reached, pending approval by the IMF’s Executive Board, an additional access of $1.1 billion under the SBA will become available.

    This anticipated inflow from the IMF is expected to further bolster the country’s reserves and serve as a promising sign for its struggling economy.

  • SBP sees surge of over $17 million in forex reserves

    SBP sees surge of over $17 million in forex reserves

    The latest data released by the State Bank of Pakistan (SBP) revealed a notable rise in the country’s foreign exchange reserves. During the week ending March 8, 2024, SBP’s reserves increased by $17.2 million, marking a 0.22 per cent growth, reaching a total of $7.91 billion.

    Additionally, Pakistan’s overall reserves experienced a surge, ascending by $131.3 million, or 1.01 per cent, week-on-week (WoW), to a sum of $13.15 billion. This increase was further complemented by a rise in reserves held by commercial banks, which climbed by $114.1 million, or 2.23 per cent, to reach $5.24 billion.

    In a significant development, the second review of the stand-by arrangement (SBA) with the International Monetary Fund (IMF) is slated to take place from March 14 to 18, 2024. This review holds particular importance as it marks the final assessment under the SBA. Upon reaching a staff-level agreement, the final tranche of $1.1 billion will be disbursed, subject to approval by the Executive Board of the IMF.

    It is noteworthy that in the current fiscal year, Pakistan has witnessed a substantial increase in its total liquid foreign reserves, amounting to $3.99 billion, or 43.57 per cent. Similarly, the ongoing calendar year has seen a rise of $0.48 billion, or 3.77 per cent.

  • Pakistan’s forex reserves dip by $173 million, SBP cites debt repayments

    Pakistan’s forex reserves dip by $173 million, SBP cites debt repayments

    The State Bank of Pakistan (SBP) has reported a decrease of $173 million in its foreign exchange reserves on a weekly basis, revealing a total of $8.04 billion as of February 2, according to data released on Thursday.

    The country’s overall liquid foreign reserves are reported to stand at $13.09 billion, with commercial banks holding net foreign reserves amounting to $5.05 billion.

    The SBP has identified debt repayments as the primary factor contributing to the decline in reserves. In an official statement, the SBP stated, “During the week ending on 2-Feb-2024, SBP’s reserves decreased by US$ 173 million to US$ 8,044.0 million due to debt repayments.”

    This follows a trend from the previous week when Pakistan’s central bank reserves experienced a decrease of $54 million. The ongoing challenges related to debt servicing continue to impact the nation’s foreign exchange reserves.