KARACHI:
Pakistan’s foreign exchange reserves, held by the State Bank of Pakistan (SBP), increased by $43 million, reaching a 26-month peak of $9.51 billion in the week ending September 13, 2024, as per the central bank’s latest report.

This boost coincided with the strengthening of the Pakistani rupee, which reached a five-and-a-half-month high of Rs277.91 against the US dollar in the interbank market, continuing its upward trend for the seventh consecutive day.

According to SBP data, reserves have been climbing steadily for eight consecutive weeks, rising by $482.6 million over the past two months, bringing them back to levels last seen in July 2022. The central bank has been shoring up reserves through dollar purchases in local currency markets.

In an analysts’ briefing, SBP Governor Jameel Ahmad revealed that the bank had purchased $573 million in June 2024 and is targeting reserves of $12 billion by March 2025. Strong inflows of foreign currency, driven by robust remittances and export growth, have helped the SBP strengthen reserves while also meeting foreign debt obligations.

In July, the SBP projected that reserves would climb to $13 billion by June 2025.

Although commercial bank reserves dipped by $12.6 million during the week of September 13, the country’s total reserves still rose by $30.4 million, reaching $14.82 billion.

A $75 million current account surplus in August and a recent interest rate cut by the US Federal Reserve have also supported the rupee’s ongoing strength. The Exchange Companies Association of Pakistan noted that the rupee held steady at Rs280.70 in the open market.