Pakistan’s foreign exchange reserves recorded a small increase over the past week. The SBP confirmed that reserves rose by $21 million, bringing the total to $19.681 billion.
Analysts say the current reserves provide import cover for nearly 70 days. Under International Monetary Fund (IMF) standards, reserves should equal at least 90 days of imports, highlighting a gap that still exists.
According to the latest update, the SBP’s own dollar reserves grew by $34 million, reaching $14.3 billion. In contrast, commercial banks saw their deposits fall by $12 million, reducing the total to $5.3 billion.
The rise in the central bank’s holdings offers some relief but does not ease concerns completely. Economists point out that Pakistan still needs stronger reserves to meet external financing needs and ensure long-term economic stability.
Meanwhile, the Senate Standing Committee on Finance raised an unrelated issue linked to the central bank. Lawmakers recommended that the authority to set the salary of the SBP governor be withdrawn from the bank’s board and brought under government approval. Senator Anusha Rehman called for legislation to support this change.
The committee also expressed concern over a Rs380 million increase in salaries of officials at the Securities and Exchange Commission of Pakistan (SECP). It was revealed that as of October 2023, the SBP governor’s monthly salary was Rs4 million, excluding allowances. Lawmakers have summoned the governor to explain the package in detail.
Experts note that while the increase in reserves is a positive step, more reforms and inflows are required. Pakistan continues to depend on international assistance and disciplined fiscal management to maintain stability and close the gap between current reserves and IMF benchmarks.
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