As of November 30, 2023, Pakistan’s official reserve assets, encompassing foreign currency reserves (FOREX), IMF reserve position, Special Drawing Rights (SDRs), gold, and other reserve assets, amounted to $12.33 billion, according to the State Bank of Pakistan (SBP).
The entire amount of foreign currency reserves, which included deposits with domestic and foreign banks, securities, and currency, was $4.9 billion.
Gold reserves, which include deposits and swapped gold, stood at 2.079 million fine troy ounces, equivalent to $4.23 billion. This increase was attributed to the rise in the international spot gold price. Other foreign currency assets amounted to $82.3 million.
Pakistan’s predetermined short-term net drains on foreign currency assets amounted to $27.47 billion, with the majority involving foreign currency loans, securities, and deposits. The report also detailed short and long positions in forwards and futures, collateral guarantees, and contingent liabilities in foreign currency.
OVERVIEW OF PAKISTAN’S OFFICIAL RESERVE ASSETS: $12.33 BILLION
As of November 30, 2023, Pakistan’s official reserve assets stood at a noteworthy $12.33 billion. These assets encompass a variety of holdings, including foreign currency reserves, IMF reserve position, Special Drawing Rights (SDRs), gold, and other reserve assets.
BREAKDOWN OF FOREIGN CURRENCY RESERVES: $4.9 BILLION
A substantial portion of these reserves, around $4.9 billion, is held in foreign currency. This includes a mix of securities, currency, and deposits held with both national and international banks. These reserves play a crucial role in maintaining stability in the country’s economic landscape.
SHINING BRIGHT: GOLD RESERVES AT $4.23 BILLION
Gold, often considered a symbol of financial strength or a safe haven, constitutes a substantial part of Pakistan’s reserves. The country holds 2.079 million fine troy ounces of gold, equivalent to an impressive $4.23 billion. This increase is attributed to the rise in the international spot gold price during the review month.
OTHER FOREIGN CURRENCY ASSETS AND LIABILITIES
Moreover, beyond foreign currency and gold, Pakistan holds additional foreign currency assets totaling $82.3 million. However, it’s essential to note that the country also has predetermined short-term net drains on foreign currency assets, amounting to $27.47 billion. These drains primarily consist of foreign currency loans, securities, and deposits.
FORWARD TO THE FUTURE: SHORT AND LONG POSITIONS
Pakistan is not just holding assets; it’s also navigating the dynamics of short and long positions in forwards and futures in foreign currencies. The aggregate amount stands at $3.247 billion, including both short positions worth $3.779 billion and long positions amounting to $532 million.
COLLATERAL GUARANTEES AND CONTINGENT LIABILITIES
Adding another layer to the financial landscape, Pakistan has collateral guarantees on debt due within a year, amounting to $34.39 million. Additionally, there are contingent liabilities in foreign currency due within a month, totaling $1.087 billion.
These financial details, which highlight Pakistan’s reserve asset strength and strategic management, essentially offer a window into the country’s economic preparedness. Maintaining different kinds of wealth while simultaneously taking care of immediate responsibilities and commitments requires careful balance.
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