SBP buys $6bn to bolster its forex reserves

The State Bank of Pakistan (SBP) has purchased $5.9 billion from the currency market since June 2024 to bolster its reserves despite receiving support from the International Monetary Fund (IMF) and friendly countries. The higher remittance inflows provided sufficient room for the State Bank to purchase dollars, but it was unable to achieve the target it had projected for itself. Following unexpectedly higher inflows from overseas Pakistanis, the SBP revised its foreign exchange reserves target to $14 billion and remittances to $38bn for FY25. According to Topline Securities, the SBP purchased $223 million in February, while the total dollar buying reached $5.9 billion from June 2024 to the end of February.