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Pakistan Central Bank Reserves Rise to $17.26 Billion

Large IMF and bond inflows followed by heavy external debt repayments have produced sharp swings that leave import cover near 2.54 months.

Overview

  • The State Bank of Pakistan said its foreign exchange reserves rose by $33 million in the week ended July 17 to $17,258.6 million, taking total liquid reserves to about $22.67 billion.
  • Commercial banks held roughly $5.41 billion in net foreign assets, a figure that fell modestly in the latest reporting week and offset part of the central bank’s gain.
  • Recent weeks have seen big one-off moves, including a $1.944 billion jump tied to government-related inflows and a prior $1.245 billion fall driven mainly by external debt repayments.
  • Analysts say the current reserve stock provides about 2.54 months of import cover, a level that leaves Pakistan vulnerable to large shocks in oil prices or capital flows.
  • Regional context highlights the constraint on Pakistan: India’s reserves rose to $676.237 billion in the same reporting week, and global risks such as Middle East tensions could push costs higher or affect investor flows.