SBP says it bought $24 billion from market in three years to build reserves

The State Bank of Pakistan has informed the Senate Standing Committee on Finance on Wednesday that it purchased $24 billion from the local market over the past three years to build foreign exchange reserves, according to a news report. 

The committee meeting was chaired by Senator Saleem Mandviwalla. During the briefing, the SBP governor said reserves are projected to rise to $18 billion by June and exceed $20 billion by December 2026, adding that reserve accumulation has been supported through market purchases.

He said the central bank’s reserves stand at about $16 billion, including $12.5 billion in cash deposits placed by Saudi Arabia, the UAE and China.

On the UAE facility, the governor said the country had previously rolled over $3.5 billion on an annual basis, but the arrangement changed in January when $2 billion matured and is now being rolled over on a monthly basis.

The standing committee also deferred approval of a private member’s bill moved by PPP lawmakers that sought disclosure of money spent by companies on social welfare.