Pakistan’s foreign exchange reserves rose to a five-year high of $ 23.2 billion at the end of last week, attributed to large inflow of foreign debt.

“The increase in reserves is due to the receipt of $ 2.5 billion in revenue from the issuance of Pakistani Eurobonds,” the State Bank of Pakistan (SBP) said in a statement on Thursday.

The country’s foreign exchange reserves increased to $ 23.2 billion, the highest level since June 30, 2016.

Reserves increased weekly by 12.2 percent on weekly basis. The country’s reserves last week amounted to $ 20.6 billion.

Central bank reserves rose to $ 16.1 billion, the highest level since fiscal 2017.

The State Bank of Pakistan reserves increased by $ 2.5 billion during the week to $ 13.5 billion.

Commercial bank reserves amounted to $ 7.1 billion.

This is a very positive development and the foreign loan is expected to give the government much-needed respite in managing its External Funding. Given the amount of reserves, there is no downside risk in reserves, at least in the short and medium term.”

Reserves have been stable since the second quarter of the current fiscal year due to a combination of factors including continued official and private foreign inflows, exchange rate appreciation, and a managed current account.

This year, the Pakistani rupee has gained 4.46% against the dollar.

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