ISLAMABAD: The State Bank of Pakistan today reported a $31 million increase in its foreign exchange reserves by Oct 6, 2023.
The total liquid foreign reserves of Pakistan stood at US$ 13.03 billion as of 06-Oct-2023.
The break-up of the foreign reserves position is as under:
i) Foreign reserves held by the State Bank of Pakistan: US$ 7.646 billion;
ii) Net foreign reserves held by commercial banks are US$ 5.383 billion
iii) Total liquid foreign reserves: US$ 13.03 billion.
During the week ended on 06-Oct-2023, SBP’s reserves increased by US$ 31
million and amounted to US$ 7.646 billion.
The central bank gave no reason for an increase in its forex reserves. However, analysts believe that foreign exchange dealers are surrendering dollars to the SBP and commercial banks on a daily basis amid the greenback’s falling value.
Meanwhile, in the month of September 2023, the remittances also surged by 5.3 percent. The SBP reported this increase on a month-on-month basis in September 2023.
According to the SBP’s data, overseas workers’ remittances recorded an inflow of US$2.2 billion during Sep 2023. In terms of growth, during Sep 2023, remittances increased by 5.3 percent on m/m. Meanwhile, in the first quarter of the ongoing fiscal year, the SBP recorded a remittance inflow of US$ 6.3 billion.
Remittances inflows during Sep 2023 were mainly sourced from Saudi Arabia ($538.2 million), United Arab Emirates ($400 million), United Kingdom ($311.1 million), and United States of America ($263.4 million).
IMF projects 2.5% economic growth for Pakistan
Meanwhile, the International Monetary Fund (IMF) has projected Pakistan’s economy is expected to experience a growth rate of 2.5% in 2024, with the potential to increase to 5% by 2028.
The IMF’s World Economic Outlook indicates a decline in inflation in Pakistan, projected to drop from 29.2% in 2023 to 23.6% in 2024. The Fund released its WEO on Tuesday.
Additionally, the report forecasts a reduction in Pakistan’s unemployment rate from 8.5% to 8% in the coming year.
However, it also anticipates an increase in the current account deficit from 0.7% to 1.8% in 2024.
Meanwhile, the IMF painted a cautious picture of the global economy, acknowledging that it is gradually recovering. The IMF projects global economic growth to remain at 3% for the current year, consistent with its previous forecast from July.
However, the forecast for the following year has been slightly adjusted downward to 2.9%. The IMF characterizes the global economy as still facing challenges, including high inflation, tight monetary policies, the Russia-Ukraine conflict, and extreme weather events.
