SBP-held foreign exchange reserves increase $31mn, now stand at $9.13bn

Foreign exchange reserves held by the State Bank of Pakistan (SBP) increased by $31 million on a weekly basis, clocking in at $9.13 billion as of June 14, data released on Thursday showed.

Total liquid foreign reserves held by the country stood at $14.41 billion. Net foreign reserves held by commercial banks stood at $5.28 billion.

The central bank did not specify a reason for the increase in the reserves.

“During the week ended on 14-June-2024, SBP reserves increased by US$ 31 million to US$ 9,134.7 million,” it said.

Last week, Pakistan’s central bank reserves decreased marginally by $6 million.

Last month, SBP reserves jumped $1.114 billion to reach above $9 billion after nearly two years.

The increase in the dollar stockpile had come in line with reflection of the last tranche of $1.1 billion from the International Monetary Fund (IMF) for its $3 billion Stand-By Arrangement.

The federal government presented its budget for the financial year 2024-25 last week, with a GDP growth target of 3.6%.

The budget was announced with a total outlay of Rs18.9 trillion (up 30% compared to the budgeted outlay of FY24), and gross revenue receipts are expected at Rs17.8 trillion. The Federal Board of Revenue (FBR) taxes are envisaged at Rs12.97 trillion, an amount nearly 40% higher than the outgoing fiscal year.

In a post-budget presser, Federal Minister for Finance and Revenue Muhammad Aurangzeb said he was hopeful of a Staff-Level Agreement (SLA) with the International Monetary Fund (IMF) by July this year.

An inflow from the Washington-based lender will help Pakistan boost its foreign exchange reserves.

Meanwhile, debate on the budget opened in the National Assembly on Thursday, where Leader of the Opposition Omar Ayub assailed the government over the proposed budget, terming it against the interest of the country.

“This budget is economic terrorism against the people of Pakistan,” the opposition leader said. “The budget has been made through an economic hitman who wants to shake the pillars of the country,” he added.