SBP bought $27bn from market in 3.5 years, Governor Jameel Ahmad

ISLAMABAD – State Bank of Pakistan (SBP) Governor Jameel Ahmad has informed the National Assembly Standing Committee on Finance that the central bank has purchased around $27 billion from the domestic market over the past three and a half years to strengthen the country’s foreign exchange reserves. The briefing was given during a meeting of the committee chaired by Syed Naveed Qamar, where lawmakers reviewed the country’s economic situation, progress under the International Monetary Fund (IMF) programme, and external financing requirements. The SBP governor stated that approximately $4.5 billion had been acquired from the local market during the current fiscal year alone as part of efforts to stabilise reserves and support external account stability. He further told the committee that Pakistan’s foreign exchange reserves were showing a steady upward trend despite significant external debt repayments of nearly $5 billion made in April. “Reserves are increasing on a weekly basis even after debt repayments, and are expected to soon cross $17 billion,” Jameel Ahmad said while briefing lawmakers. According to the presentation, the central bank currently holds around $16 billion in reserves, which include deposits of approximately $12 billion from friendly countries such as Saudi Arabia and China. On economic performance, the SBP governor projected that the economy would grow by more than 4% in the third quarter of the current fiscal year. He added that overall annual growth is expected to remain above last year’s 3.1%, despite external pressures including regional geopolitical tensions. The committee also discussed monetary policy decisions, where Pakistan Tehreek-e-Insaf (PTI) MNA Jawed Hanif raised concerns over interest rate adjustments amid inflationary pressures caused by rising global oil prices and supply disruptions. In response, the SBP governor explained that inflation was largely driven by energy costs, while core inflation was also on an upward trend. H