The State Bank in Pakistan (SBP) bought $ 4.98 billion from a bank between June and November 2024 to enhance foreign exchange reserves and debt obligations management, according to the latest data.
In November alone, SBP bought $ 1.151 billion, compared to $ 1.026 billion in October.
A report issued by Arif Habib Limited indicated that the net foreign exchange interventions in SBP contributed to an increase of $ 2.9 billion in reserves, with the remaining amount directed towards debt service.
As of February 14, SBP reserves amounted to $ 11.20 billion, which cover more than two months of imports.
While the reserves showed a slight improvement after three weeks of decline, the continuous external debt payment and the current current account deficit – moved by an expanded commercial gap – can exercise renewable pressure, especially in the absence of additional foreign flows.
However, the expected payments from the International Monetary Fund under the Fund’s Fund, along with climate flexibility financing, may provide a pillow for reserves.
Finance Minister Mohamed Uranzib confirmed that a technical mission in the International Monetary Fund has arrived in Pakistan to discuss the Climate Flexibility Fund. The task will remain for three to four days before more deliberations.
In addition, another delegation from the International Monetary Fund is scheduled to visit in the first week of March for the official review of the Pakistani loan program of $ 7 billion.
