IMF tranche propels Pakistan's forex reserves to $8.27bn

The State Bank of Pakistan (SBP) has reported a increase in its foreign exchange reserves, marking a rise of $243 million within a week.

According to the data released by the central bank on Thursday, the reserves held by the SBP as of January 19 amounted to $8.27 billion, up from $8.027 billion on January 12.

This increase is largely attributed to the receipt of the second tranche of $705 million from the International Monetary Fund (IMF), which is part of a broader $3 billion Stand-By Arrangement (SBA) with Pakistan. Additionally, the central bank has successfully managed the government’s external debt repayments in this period.

In a wider context, the total liquid foreign currency reserves of Pakistan, including the reserves held by banks other than the SBP, stood at $13.341 billion. This figure represents an increase of $196 million compared to the previous week. However, it is important to note a decrease in the net reserves held by other banks, which fell by $47 million to a total of $5.071 billion.

The recent developments in Pakistan's foreign exchange reserves demonstrate the country's effective financial management and its active collaboration with international financial entities like the IMF.