The State Bank of Pakistan (SBP) made a record purchase of $9 billion from the local market in 2024 to strengthen the country’s foreign exchange reserves. This move came at a time when foreign loans were not flowing in as expected, according to SBP Governor Jameel Ahmad.
Out of the total amount, $4.5 billion was bought during the second half of the year, showing an increased effort to stabilize the reserves. The SBP used about Rs. 2.5 trillion to make these purchases based on the current exchange rates.
The central bank’s actions are part of its broader strategy to manage the country’s economic challenges and ensure financial stability. By increasing its foreign exchange reserves, the SBP aims to build confidence in the market and provide a buffer against external financial pressures.
This significant intervention highlights the challenges Pakistan faces in maintaining a steady flow of foreign funds. Limited access to foreign loans has forced the SBP to rely on local markets to secure the required foreign currency.
The purchase of $9 billion marks an important step in stabilizing the economy, but it also underscores the need for long-term strategies to ensure sustainable economic growth and financial stability.
As the central bank continues to address these challenges, maintaining sufficient reserves will remain a key priority for Pakistan’s financial system.
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