Pakistan’s forex reserves jump to $9.53 bn: How it compares with SAARC nations

New Delhi: The State Bank of Pakistan reported a $24 million rise in foreign exchange reserves to $9.53 billion in the week ending September 20, 2024. This marked a 26-week high in the country’s forex kitty. Pakistan’s forex reserves took a major hit post-COVID-19 pandemic as the country witnessed prohibitively high inflation rates and a natural calamity.

To put this in perspective, the current reading is the highest for Pakistan in 24 months. To be sure, countries across the Indian subcontinent have faced similar challenges, with Sri Lanka and Bangladesh also having struggled on the economic front and being forced to seek relief in the form of funding from the International Monetary Fund.

The latest forex numbers for Pakistan received support from a $7 billion IMF loan, which boosted the Pakistani rupee to by 0.16 PKR to 277.69 PKR per dollar.

Comparison of SAARC countries’ forex reserves

Source: News reports and central bank data

Afghanistan forex reserves

According to the above table, Afghanistan’s foreign exchange reserves remain frozen on account of Western sanctions against the Taliban-governed country, The country’s central bank decided to undertake dollar sales to snure currency stability for the Afghani.

Bangladesh forex reserves

Bangladesh is required to maintain forex reserves which are sufficient to cover 3.50 months of imports, The Financial Express Bangladesh reported. However, the country currently maintains reserves equivalent to covering 3.10 months’ imports, according to the report.

While the IMF has set a $14.90 billion net international reserves target for Bangladesh by end-September 2024, the country’s reserves shoudl be around $16 billion at the end of the above target period, the FEB reported, citing officials.

Bhutan foreign exchange reserves

The mountain kingdom’s forex reserves stood at $624 million as of June 2024. Interestingly, Bhutan holds reserves worth a third of its economy in bitcoin, according to Arkham data.

Maldives forex reserves

The country’s forex reserves have remained under significant stress since the COVID-19 pandemic. According to Fitch Ratings, this trend is expected to continue in 2025 and 2026 owing to its reliance on external financing. Maldives is required to pay a sizeable external debt which is expected to impact its forex kitty, according to the rating agency. Fitch Ratings downgraded Maldives’ sovereign rating to CCC+ from B- owing to a decline in the country’s forex reserves.

Nepal forex reserves

According to the Nepal Rastra Bank, the country’s forex reserves jumped by 2.5 per cent as of mid-August backed by a rise in remittances from aborad and tourist spending in Nepal. According to an ORF research report, Nepal’s economy was struggling from a range of crises in trade and the domestic economy. The country’s agricultural and industrial production was in a state of decline, according to the report by ORF visiting fellow Hari Bansh Jha.

However, the IMF recently stated that the country had shown early signs of recovery while adding that Nepal should continue to focus on addressing stress in savings and credit cooperatives.

Sri Lanka forex reserves

Fitch Ratings affirmed Sri Lanka’s rating at RD after the recent political change in the island nation which witnessed the ascent of a Communist leadership for the first time since its independence. Sri Lanka’s forex reserves have shown improvement with gross reserves touching the $6 billion mark at August end, the rating agency noted.

India forex reserves

India’s forex reserves have risen for more than 3 straight weeks on account of a rise in gold purchases as well as dollar purchases by the central bank. India’s forex reserves inched close to the $690 billion mark in the week of September 13, 2024. All eyes will be on the data for the week of September 20, 2024. India’s forex reserves have rebounded to record highs after a brief lull on account of fluctuation in INR-Dollar exchange rates. However, strong macroeconomic fundamentals and a buoyant stock market augur well for the Indian economy.

 The State Bank of Pakistan reported a $24 million rise in forex reserves to $9.53 billion in the week ending September 20, 2024. Here’s how it compares with SAARC nations.  Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today