The State Bank of Pakistan (SBP) bought $3.8 billion from the interbank market in June-October 2024 to increase forex reserves by $2.1 billion and meet debt obligations.
Of the total, $1.7 billion was allocated for debt servicing.
The central bank’s intervention was supported by unexpectedly high remittance inflows, which surged 33 percent to $17.8 billion in the first half of the fiscal year.
Despite the dollar purchase, the exchange rate remained stable. The central bank is tipped to purchase an additional $5 billion if remittances continue to increase. Finance Minister Muhammad Aurangzeb has projected total remittances to exceed $35 billion in FY25.
The trade deficit widened in December 2024 due to increased imports, but bankers estimate it to remain within range. The current account remains positive at $1.2 billion. The SBP governor estimates a surplus or deficit within 0.5 percent of GDP by the fiscal year’s end.
Stay Connected with ProPakistani
Get the latest business news, market insights, and economic updates wherever you prefer.
Add ProPakistani to Preferred Sources and see more of our stories in Google Search and Top Stories.
