SBP foreign exchange reserves rise by $3 million to $7.96 billion

Karachi: The State Bank of Pakistan’s (SBP) foreign exchange reserves increased by $3 million to $7.96 billion as of November 11, according to data issued by the central bank on Thursday.

Pakistan’s total liquid foreign reserves are $13.8 billion, with commercial banks holding $5.84 billion in net foreign reserves.

“During the week ending November 11, SBP’s reserves climbed by $3 million to $7,959.5 million,” SBP said in a statement, without saying where the money came from.

The central bank’s reserves declined by $956 million due to debt payments, falling to $7.96 billion as of November 4, 2022.

Last week, Finance Minister Ishaq Dar announced that the Asian Infrastructure Investment Bank (AIIB) would provide $500 million in co-financing for a Pakistan development program.

“These money will be received by the SBP by November 2022,” Dar tweeted, as the cash-strapped country seeks funding to mitigate the effects of floods.

These monies would contribute to the central bank’s FX reserves.

In October, the Asian Development Bank (ADB) approved $1.5 billion in assistance to assist Pakistan in providing social protection, promoting food security, and assisting its people in finding work in the aftermath of disastrous floods and global supply chain disruptions.

Analysts believe the country’s relatively low forex reserves are a bad omen because the local currency is now weak versus the dollar.