SBP forex reserves leap 16.6pc

The State Bank of Pakistan's (SBP) foreign exchange reserves increased by 16.6 per cent or $2.648 billion to $18.658bn during the week ended on December 3 as compared with the $16,010.3 held on November 26, the central bank announced on Thursday.

“After accounting for external debt and other official payments, SBP reserves increased by $2.648bn,” the SBP said in a statement, adding that the increase in reserves came primarily on the back of a $3 billion deposit by the Saudi Fund for Development.

The total reserves of the country rose to $25.150bn while the holdings of the commercial banks were $6.492bn during the week.

It may be recalled that on November 29, the central bank of Pakistan and the Saudi Fund for Development (SFD) signed a deposit agreement for funds worth $3 billion.

On October 27, the SFD agreed to deposit $3 billion in the SBP to help support its foreign reserves.

The fund had stated that an official directive was issued to supply $1.2 billion to finance Pakistan’s oil products trade during the year.