Pakistan's foreign exchange reserves surge to $14.5 bn

KARACHI: In a significant boost to Pakistan’s financial stability, the nation’s foreign exchange reserves soared to $14.5 billion after receiving a substantial tranche from the International Monetary Fund (IMF), ARY News reported on Thursday.

According to data released by the State Bank of Pakistan (SBP) on May 3, the domestic foreign exchange reserves witnessed a substantial rise, standing at $14.45 billion.

Notably, the reserves of the SBP experienced a commendable surge, jumping by $1.11 billion to reach $9.12 billion.

Similarly, the foreign exchange reserves held by commercial banks also saw a significant upswing, recording an increase of $2.86 billion to reach $5.33 billion.

Last month, Pakistan received the much-awaited $1.1 billion final tranche from the International Monetary Fund (IMF) as part of the $3 billion standby arrangement, the State Bank of Pakistan (SBP) confirmed.

The SBP said it received Special Drawing Rights (SDR) 828 million — equivalent to $1.1 billion in value — “following the successful completion of the second review by the Executive Board of IMF under Stand-By Arrangement (SBA)”

The central bank said that the disbursement will be reflected in SBP reserves for the week ending on May 3, 2024.

A day earlier, IMF’s Executive Board completed the second review under the Stand-By Arrangement (SBA) for Pakistan, allowing for bringing total disbursements under the arrangement to about $3 billion.

“The completion of the second and final review ref­lects the authorities’ stron­ger policy efforts under the SBA, which have supported the stabilization of the economy and the ret­urn of modest growth,” the IMF said in a statement.

“To move Pakistan from stabilization to a strong and sustainable recovery the authorities need to continue their policy and reform efforts, including strict adherence to fiscal targets,” the statement added.