Islamabad, 23 August 2024 (TDI): The State Bank of Pakistan reported a noteworthy increase in foreign exchange reserves, which rose by $19 million to reach a total of $9.29 billion at the ending week of August 16, 2024. Its growth in reserves shades the current efforts of Pakistan to stabilize the economy and build robust substitution against economic challenges.
The recent increase in foreign exchange reserves shows a gradual recovery. The Government, along with the State Bank has prepared well to implement strict policies to bolster the country’s foreign exchange reserves. These measures consist of tightening monetary policy, fiscal management, and achieving external financing from international states.
At the same time, the government has been working to save financial assistance in collaboration with friendly countries. The hard work has started to produce outcomes as shown in the recent inflows that rise in reserves. State Bank helps maintain flexible exchange rates to stabilize the currency in the foreign exchange market.
Value of Reserves
Foreign exchange reserves stand at $9.29 billion, making a $19 million increase previously. It maintains to cover import bills and provide space against economic shocks, and external debt. The reserves are not yet at an ideal level but a speedy increase is an optimistic signpost of the country’s financial health. Such changes will place the country on the road to stabilized economies. Economists appreciate the efforts, made by the State Bank. Pakistan, along with the International Monetary Fund (IMF), can enhance economic resilience, foster growth, and minimize the fiscal year.
Future Perspective
The State Bank and Government are concentrated on the positive direction of reserves accumulation. The authorities are eager to know that foreign exchange reserves will grow timely as the country follows economic reforms. It improves foreign direct investment, and external debt, and increases exports.
Efforts of the State Bank and Government assert that trade and investment are expected to enhance Pakistan’s currency, will achieve to generate further foreign exchange earnings. However, Middle Eastern Banks are expected to give loans that strengthen the country’s foreign exchange reserves in the next few months.
Although the rapid increase in foreign exchange reserves to $9.29 billion is a favorable development, gradual improvement will stabilize the country’s financial crisis. The Government and State Bank are quite committed to implementing policies that can foster reserve levels and boost the economic base. Pakistan continues to resolve economic challenges. Foreign reserves will play a key part in bringing long-term development and stability.
The foreign exchange reserves of the State Bank of Pakistan (SBP) rose by $19 million to $9.29 billion during the week ending Aug 16.https://t.co/9zlogWEfWh
— Dawn Business (@dawn_business) August 23, 2024
