The official reserve assets of Pakistan, encompassing foreign currency reserves, IMF reserve positions, Special Drawing Rights (SDRs), gold, and other reserve assets, reached $15.05 billion in April 2024, an increase from $13.77 billion in the previous month, according to the latest data released by the State Bank of Pakistan (SBP) on Monday.
BREAKDOWN OF RESERVE ASSETS
- Foreign Currency Reserves: The foreign currency reserves, which include securities, currency, and deposits held with other central banks and banks both domestically and internationally, stood at $4.78 billion in April, a slight decrease from $4.79 billion in March.
- Gold Reserves: The gold reserves remained constant in volume at 2.079 million fine troy ounces. However, their value in USD terms increased to $4.8 billion from $4.6 billion the previous month.
- Other Foreign Currency Assets: Pakistan’s other foreign currency assets rose to $118.51 million in April, up from $98.51 million in March.
SHORT-TERM FOREIGN CURRENCY LIABILITIES
The data also reveals that Pakistan’s predetermined short-term net drains on foreign currency assets totaled $27.52 billion in April, an increase from $26.77 billion in March. These outflows were primarily composed of principal payments amounting to $23.95 billion and interest payments on foreign currency loans, securities, and deposits totaling $3.57 billion.
- Principal Payments: Of the $23.95 billion in principal payments, $1.72 billion were due within one month, $10.21 billion were due in more than one month but up to three months, and $15.59 billion were due in more than three months but up to one year.
FORWARD AND FUTURES POSITIONS
The report highlighted that Pakistan’s aggregate short and long positions in forwards and futures in foreign currencies, including the forward leg of currency swaps, amounted to $3.4 billion. This comprised short positions worth $3.59 billion and long positions totaling $205 million.
CONTINGENT LIABILITIES AND COLLATERAL GUARANTEES
In addition, there are $31.26 million in collateral guarantees on debt due within a year and $1.13 billion in contingent liabilities in foreign currency that are due within one month.
This comprehensive data from the SBP provides a detailed picture of Pakistan’s foreign reserve assets and liabilities, indicating a strengthening in reserve levels amidst various short-term obligations.
