By Staff Reporter
ISLAMABAD: Pakistan’s total liquid foreign-exchange reserves climbed above $21 billion at the end of last week, lifted by fresh inflows from the country’s first return to international capital markets in four years.
The reserves rose $641 million to $21.269 billion in the week through April 24 from $20.628 billion a week earlier, according to the State Bank of Pakistan’s weekly report. Central-bank holdings jumped $730 million to $15.828 billion, while net foreign reserves held by commercial banks slipped $90 million to $5.441 billion.
The increase was driven primarily by proceeds from Pakistan’s $750 million three-year Eurobond, the SBP said. The fresh dollars helped cushion external payment pressures at a time when the country faces sizable debt maturities in the coming months.
Pakistan re-entered the global debt markets after a four-year absence with the launch of the Eurobond. The transaction was initially marketed at $500 million and drew strong demand from global investors, prompting the government to exercise a greenshoe option and raise an additional $250 million. The final size of $750 million reflects broader participation and stronger-than-expected appetite from institutional accounts, underscoring renewed confidence in the country’s economic trajectory.
The inflows arrived as Pakistan made $3.4 billion in external debt repayments to the United Arab Emirates during the same period. Those outflows were largely offset by bilateral financial support, including a $3 billion inflow from Saudi Arabia.
The net effect has provided a short-term lift to the country’s external accounts. Economists note that while the Eurobond proceeds and allied deposits have stabilised reserves for now, a durable improvement in the balance of payments will hinge on sustained access to financing and faster growth in exports.
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