https://arab.news/y3cth
- State Bank of Pakistan foreign exchange reserves rise above $17 billion
- IMF disbursement, debut Panda Bond boost Pakistan’s external buffers
KARACHI: Pakistan’s foreign exchange reserves held by the central bank rose by $1.214 billion in the week ending May 15, helped by inflows from the International Monetary Fund and proceeds from the country’s debut Panda Bond issuance, the State Bank of Pakistan (SBP) said on Thursday.
The SBP’s reserves increased by $1.214 billion to $17.081 billion in the week ending May 15, according to a central bank statement. Total liquid foreign reserves held by the country stood at $22.588 billion, including $5.507 billion held by commercial banks.
The increase comes as Pakistan seeks to shore up its external position amid lingering regional instability linked to the US-Iran conflict and uncertainty around global energy markets, which have heightened concerns for the import-dependent South Asian economy.
“The increase in SBP’s FX reserves is mainly due to receipt of funds from IMF under the Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF); and proceeds from issuance of Panda Bonds,” the central bank said.
“There were some external debt repayments as well.”
Earlier this month, the IMF executive board approved around $1.32 billion for Pakistan under its ongoing support programs, including roughly $1.1 billion under the EFF and about $220 million under the climate-focused RSF.
Pakistan also raised the equivalent of about $250 million this month through its first-ever Panda Bond issuance in China’s domestic bond market, part of Islamabad’s efforts to diversify external financing sources and reduce reliance on traditional international debt markets.
The yuan-denominated three-year bond, issued at a coupon rate of 2.5 percent, was oversubscribed more than five times, according to Pakistani officials.
Pakistan’s reserves position remains closely watched by investors and rating agencies as the country navigates external financing pressures, high debt repayments and elevated import costs following months of geopolitical tensions around the Strait of Hormuz, a critical global energy shipping route.