The State Bank of Pakistan (SBP) reported an increase of $215 million in its foreign exchange reserves, bringing the total to $11.022 billion for the week ending October 11, the highest level since FY21.
The central bank made the announcement on Thursday but did not specify the source of the inflow.
Market analysts speculate that the SBP has been purchasing dollars from the banking market. The government aims to further increase the reserves to $13 billion by the end of the current fiscal year.
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Higher reserves are seen as a stabilizing factor for the exchange rate, which may encourage exporters to sell more of their proceeds. Bankers also noted strong inflows, including remittances, so far in the fiscal year.
Pakistan’s total foreign exchange reserves now stand at $16.111 billion, with $5.088 billion held by commercial banks.
