Karachi: Pakistan’s total liquid foreign exchange reserves rose to USD 26.79 billion as of 11 September, with a large weekly increase following the receipt of proceeds from the country’s latest Eurobond issuance.
According to the State Bank of Pakistan, total reserves stood at USD 26.7912 billion on 11 September, compared with USD 23.7158 billion a week earlier. The increase was driven primarily by a USD 3.061 billion rise in reserves held by the central bank.
SBP reserves reached USD 21.389 billion, while foreign exchange reserves held by commercial banks stood at USD 5.4022 billion.
The central bank attributed the increase in its reserves to the receipt of proceeds from Pakistan’s Eurobond issuance. Commercial bank reserves also increased during the week, rising by USD 14.6 million.
The latest figure puts Pakistan’s total liquid reserves at their highest level since the current series began, although the composition of the increase matters.
The sharp weekly rise largely reflects the arrival of borrowed funds through the international bond market rather than a single week of stronger exports or remittance inflows.
Pakistan raised USD 3 billion through its latest Eurobond transaction, with the proceeds adding to the country’s official foreign exchange holdings. The increase therefore strengthens the immediate reserve position while also adding an external repayment obligation for the government.
Foreign exchange reserves are closely watched because they provide a buffer for meeting external payment requirements, including imports and debt related obligations. Higher reserves can also improve the country’s ability to manage short term pressures on the balance of payments and the currency market.
The latest figures come as the State Bank maintains its policy rate at 11.5 percent. The central bank’s reserve data is released weekly, with each statement reporting the position at the end of the previous Friday.
