KARACHI – Pakistan’s economy has achieved a significant milestone as the country’s foreign exchange reserves have surged to their highest level since March 2022.
Latest data shows the total foreign exchange reserves of Pakistan have reached $21.1 billion, a reflection of sustainable growth and investor confidence in the country’s leadership.
The reserves held by the State Bank of Pakistan stand at a record $15.9 billion, with the country’s import cover now exceeding 2.6 months.
This positive development is seen as a sign of both economic stability and the effectiveness of recent economic reforms.
Economic experts suggest that the recent increase in reserves is not the result of external loans but rather a consequence of local economic development, reforms, and restored confidence.
Data indicates that Pakistan’s external debt-to-GDP ratio has decreased from 31 percent to 26pc, reflecting fiscal discipline and the successful implementation of reform measures.
The experts stated that the development is the outcome of a clear and sustainable economic recovery. In 2023, the central bank’s reserves had dwindled to just $2.9 billion, but they have now increased by nearly five and a half times to approximately $15.9 billion.
Additionally, a significant 65% reduction in forward foreign exchange liabilities has been recorded, which is expected to substantially reduce external pressure in the future.
