In the week ending October 18, Pakistan’s foreign exchange reserves held by the central bank increased by $18 million, reaching a total of $11.041 billion, as reported by the State Bank of Pakistan. However, the overall forex reserves of the country decreased by $94 million to $16.017 billion. Commercial banks’ reserves also fell, dropping by $112 million to $4.976 billion.
This uptick in the State Bank of Pakistan’s reserves can be attributed to a reduction in the current account deficit. Notably, the first tranche of $1.03 billion from the International Monetary Fund (IMF) under the $7 billion Extended Fund Facility program has provided significant support.
In September, Pakistan’s current account recorded a surplus of $119 million, marking the second consecutive monthly surplus, following a $29 million surplus in August and a $218 million deficit in September 2023. For the first quarter of FY2025, the current account deficit narrowed dramatically to $98 million, representing a 92% decrease compared to the previous year.
