The State Bank of Pakistan (SBP) reported a minor increase in the country’s foreign exchange reserves, despite a recent $1 billion bond repayment.
SBP’s data, released on Thursday, shows reserves reached $8.054 billion as of April 12, reflecting a 0.18% weekly increase. However, analysts warn this level is insufficient to cover essential imports for four weeks.
Pakistan’s total liquid foreign currency reserves, including reserves held by commercial banks, sit at $13.37 billion. This represents a 0.5% decrease of $68 million compared to the prior week. Net bank-held reserves specifically dropped by $82.4 million during the week, reaching $5.31 billion.
It’s important to note that this data doesn’t reflect the recent $1 billion bond repayment (including principal and interest). Despite the slight increase, overall reserves remain a concern due to their inadequacy for long-term import cover.
Analysts and policymakers are closely monitoring these figures, considering their impact on Pakistan’s economic stability and foreign exchange management strategies.