Pakistan’s Foreign Reserves Cross $20 Billion Mark Registers 3-year High Level

The official foreign exchange reserves of Pakistan has been increased by 466.8 million during the last week, after which the total foreign exchange reserves crossed the level of 20.55 billion. From 20.085 million to 20.552 billion, the government’s foreign exchange reserves increased 484.3 million over the past week.

Pakistan’s foreign exchange reserves reached $13.415 billion week ended on November 20, according to information shared by the State Bank of Pakistan (SBP).

The last time Pakistan’s foreign exchange reserves were at this level was in January 2018. Pakistan’s total liquid foreign reserves, foreign exchange held by State Bank plus commercial banks of the country, also crossed the $20 billion mark. It stood at $20.552 billion. The bank said that the reserves increased by $484.3 million due to the government’s official inflows without giving further details.

Pakistan’s depleting dollar reserves were one of the main challenges for the PTI when it came into power in August 2018. Within its first six months, the PTI government saw dollar reserves down to a level that was barely enough to pay for two months of imports. To tackle this challenge, Prime Minister Imran Khan’s government signed a $6 billion bailout with the International Monetary Fund (IMF).  The increase in dollar reserves can be attributed to dollar inflows caused by the signing of the IMF program, which opened more doors for Pakistan as the World Bank, ADB and AIIB also pledged support.

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