By Staff Reporter
KARACHI: The foreign-exchange reserves held by the central bank surged by more than $1.3 billion in a single week to the highest level in almost four years, bolstered by a fresh disbursement from the International Monetary Fund.
The State Bank of Pakistan’s reserves rose to $15.89 billion as of Dec. 12, latest data showed on Thursday. The increase was driven primarily by the receipt of about $1.2 billion from the IMF under the Extended Fund Facility and the Resilience and Sustainability Facility.
The SBP’s holdings last stood above $15 billion in the week ended March 11, 2022. Reserves had plunged to a low of $2.9 billion in February 2023 amid a prolonged balance-of-payments crisis.
Total liquid foreign-exchange reserves, including those held by commercial banks, reached $21.09 billion in the week ended Dec. 12, with commercial banks accounting for $5.20 billion.
The IMF’s Executive Board last week approved the disbursement of $1.2 billion, $1 billion under the EFF and $200 million through the RSF.“ Pakistan’s policy efforts under the EFF have delivered significant progress in stabilising the economy and rebuilding confidence amid a challenging global environment and recent severe floods. Fiscal performance has been strong, with a primary surplus of 1.3% of GDP achieved in FY25, in line with targets,” the IMF said in its statement.
“Inflation has increased, reflecting the impact of the floods on food prices, but this is expected to be temporary. Gross reserves stood at $14.5 billion at end-FY25, up from $9.4 billion a year earlier, and are projected to continue to be rebuilt in FY26 and over the medium term.”
The central bank said it had surpassed its December target of $15.5 billion “despite sizable ongoing debt repayments.” “Exports came under pressure, largely owing to a sharp decline in food exports, particularly rice. On the financing side, net inflows remained tepid. Despite this, SBP’s FX reserves have crossed the December 2025 target of $15.5 billion, led by continued FX purchases by the central bank,” the SBP said in its latest Monetary Policy statement.
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