Pakistan’s forex rises by record $ 110 million in just a week despite West Asia crisis

Pakistan’s foreign exchange reserves rose by $110 million in a week to a record $26.864 billion, according to the State Bank of Pakistan (SBP), even as the West Asia conflict continues to disrupt global energy markets and push up oil prices.In a statement on Thursday, the central bank said the country's total reserves had increased from $26.754 billion in the previous week.The rise included a $39 million increase in SBP-held reserves, while commercial banks' foreign exchange holdings also improved.The SBP said Pakistan's reserves had increased by $5 billion since the conflict began in February. Its own holdings rose from $16.568 billion in February to $21.568 billion as of October 30. The central bank said the improved reserve position had helped stabilise the exchange rate and provided exporters with confidence to repatriate their earnings without delay.However, Pakistan continues to face a substantial trade gap. Its trade deficit stood at $14.6 billion in the first four months of FY27, with imports at $26 billion against exports of $11.4 billion. Financial analysts have attributed the stability of the Pakistani rupee and the improvement in foreign exchange availability largely to rising remittances.You use AI every day. Now get your AI Quotient. Take the AIQ test.