SBP's forex reserves on an upward trajectory

KARACHI: The State Bank of Pakistan’s (SBP) foreign exchange reserves hit $11.489 billion during the week ended December 27 from $10.907 billion a week ago, The News reported on Friday.

“The SBP reserves increased by $582 billion to $11,489.4 million,” said the SBP statement carried by the publication.

“This increase is attributed to bilateral and multilateral inflows, including proceeds of $452.4 million received from the IMF [International Monetary Fund] under EFF [Extended Fund Facility] program,” said the central bank.

After the addition, the total liquid foreign exchange reserves held by the country ended up at $18.081 billion from $17.595 billion.

However, the forex reserves held by commercial banks fell to $6.592 billion, compared with $6.687 billion in the previous week.

The increase is at backdrop of the IMF's decision to release Pakistan’s second tranche of $452 million under the $6 billion EFF. The lender noted that Pakistan’s programme was on track and had started to bear fruit, but warned that risks remain.