IslamabadFrom June to October 2024, the Pakistani State Bank (SBP) bought a total of $ 3.8 billion in the local foreign exchange market (FX), according to data issued by the Central Bank on Tuesday. SBP reports usually foreign exchange market interventions with a three -month delay.
These interventions in the market contributed to an increase of $ 2.1 billion in foreign exchange reserves in Pakistan, with the rest of the country’s debt repayment management, and Arif Habib Limited noticed in a report.
Data details show that SBP bought $ 573 million in June, 722 million dollars in July, $ 569 million in August, 946 million dollars in September, and $ 1.03 billion in October 2024. As a result, foreign exchange reserves in the country increased Initially by $ 280 million to $ 9.39 billion in June, but decreased by $ 169 million to $ 9.22 billion in July. However, the reserves rose again, increasing by $ 216 million to $ 9.44 billion in August, increasing by $ 1.30 billion to $ 10.74 billion in September, and gaining $ 466 million to $ 11.21 billion in October 2024.
As of January 24, 2025, SBP reserves amounted to $ 11.37 billion.
During a press conference last week, the SBP Jameel Ahmad governor highlighted that the central bank’s interventions were decisive in strengthening reserves to $ 11.5 billion in December 2024, helping to install the Rupee-Dollar exchange rate, which is currently hovering around 278 to 279 rupees per dollar. Without these interventions, the reserves had been much lower, which leads to further decrease in the value of the rupee.
“If the central bank does not interfere in the foreign exchange market to buy US dollars, our reserves will not increase,” Ahmed explained. “This would have caused a decrease in the value of the rupees against the dollar.”
Governor Ahmed also confirmed that the growth in reserves was driven by the flows of workers’ remittances and export profits, instead of increasing foreign debts. He pointed out that the Pakistani foreign public debts remained less than $ 100 billion from June 2022 to December 2024.
Tahir Abbas, Director of Securities at Arif Habib Limited, noted that the supplies of excessive foreign currencies in the market have enabled the SBP to absorb the surplus of dollars, ensuring the smooth management of short -term foreign debt obligations in the country.
Looking at the future, ABBAS expected that foreign currency supplies will remain in a surplus during the remaining period of the February 25 to June. It also predicted that the economic review of the upcoming International Monetary Fund in March 2025, followed by the expected receipt of a billion dollar segment, would increase FX reserves. By the end of the current fiscal year on June 30, 2025, Pakistan’s reserves are expected to exceed $ 13 billion.
