Pakistan’s foreign exchange reserves have reached an all-time high at $20 billion. The information was revealed in a statement from the Finance Ministry on Thursday. The reserves are distributed between the State Bank of Pakistan (SBP) and commercial banks with $15.24 billion and $4.83 billion respectively.
Finance Minister, Ishaq Dar, said that the level of foreign exchange reserves represents the stability of national economy. He said that the deep rooted and comprehensive economic policies undertaken by the current government have had a major part in stabilizing the economy.
The Minster said that the reserves shot up after the government received $1.6 billion on account of different transactions before Wednesday. The reserves were previously estimated to reach $19.2 billion during this time frame.
He quoted the international donor agencies and rating agencies, saying that they now rate Pakistan’s economy very positively. He said:
We are now working for sustainable and inclusive growth, consolidation of the economic gains and employment generation.
Prime Minister, Nawaz Sharif, congratulated the Finance Minister for his efforts and earning this achievement. Experts in the fields of currency believe that higher reserves, especially the ones in the State Bank, can help regulate the exchange rate as well. Low SBP reserves bring speculation on board which directly affects the value of the local currency just as it happened in the very recent past when the reserves became very low.