State Bank of Pakistan boosts reserves with IMF support

As of May 31, the State Bank of Pakistan (SBP) has reported a notable increase of $16 million in its foreign exchange reserves, reaching a total of $9.1 billion. The country's overall liquid foreign reserves now stand at $14.2 billion, with commercial banks holding $5.1 billion in net foreign reserves.

The SBP did not specify the exact reason for this rise in reserves. In the previous week, there was a decrease of $63 million in the central bank's reserves. However, last month, the SBP's reserves received a significant boost of $1.114 billion, surpassing the $9 billion mark for the first time in nearly two years.

This surge in reserves coincided with the final tranche of $1.1 billion received from the International Monetary Fund (IMF) as part of Pakistan's $3 billion Stand-By Arrangement. The fluctuations in SBP's reserves in recent weeks reflect Pakistan's ongoing efforts to stabilize its foreign exchange position.

The increase in Pakistan's foreign exchange reserves, particularly with the support from the IMF, signifies a positive step towards strengthening the country's economic stability. This boost in reserves not only enhances Pakistan's ability to meet its international financial obligations but also demonstrates a commitment to improving its overall financial health.