SBP-held foreign exchange reserves surge

KARACHI (Agencies): Foreign exchange reserves held by the State Bank of Pakistan (SBP) surged by $3 million to $7.96 billion as of November 11, according to the data released by the central bank on Thursday.
Pakistan’s total liquid foreign reserves stand at $13.8 billion, while net foreign reserves with commercial banks clocked in at $5.84 billion. “During the week ended on November 11, SBP’s reserves increased by $3 million to $7,959.5 million,” said SBP in a statement without giving any details about the source of this inflow.
The central bank’s reserves registered a reduction of $956 million due to debt payments, which fell to $7.96 billion as of November 4, 2022. Last week, Finance Minister Ishaq Dar announced the Asian Infrastructure Investment Bank (AIIB) would extend $500 million as co-financing for a development programme in Pakistan. “These funds will be received by the SBP within November 2022,” Dar tweeted, as the cash-strapped nation desperately seeks financing to cushion the impact of floods.
These funds would help boost forex reserves held by the central bank. In October, The Asian Development Bank (ADB) also approved $1.5 billion in financing to help Pakistan provide social protection, promote food security, and support employment for its people amid devastating floods and global supply chain disruptions. Analysts say a rather thin forex exchange reserves are not a good omen for the local currency is currently not on firm footing versus the dollar.