Karachi: The federal government’s attempts to expand its foreign exchange reserves have largely met with success; with the figures currently standing at a 19-month high (surpassing the USD 1 billion benchmark set previously) — according to a recent report issued by the State Bank of Pakistan (SBP).
As per the data shared by the SBP on Thursday, the foreign exchange reserves had registered a weekly increase of 18% (on average). Previously, the downward trend of the reserves touched the low point of USD 7 billion; which spiked concerns with regard to the government’s ability to meet the country’s financial requirements.
According to reports, the situation has been neutralised by monetary inflows received from multilateral institutions (including the Asian Development Bank that provided USD 1.3 billion in funds) and other friendly nations.
The significant contraction of the current account deficit also helped in boosting the reserves. The SBP also made a repayment of USD 1 billion during last week in its efforts to facilitate the maturation of the international Sukuk bonds.