$1bn takes SBP reserves to five-year high

KARACHI: The State Bank of Pakistan (SBP) has received $1 billion against the issuance of Eurobonds which took the foreign exchange reserves of the central bank to a five-year high of $18.2bn.

Pakistan issued Eurobonds last week which attracted investors from the international market — reflecting improved confidence in the economy and external account.

With the arrival of $1bn, total SBP reserves at $18.2bn are higher than the $18.14bn it held in the financial year 2015-16. The country’s total reserves include holding of scheduled banks. On July 2, the country’s reserves were $24.4bn compared to $23.098bn in FY16.

Pakistan issued Eurobonds worth $300 million for five-years at a rate of 5.857 per cent, $400m bonds for 10-years at the rate of 7.125pc and $300m for 30 years at the rate of 8.45pc. 

Higher foreign exchange reserves helped the county to bring stability in exchange rate, improved current account deficit and offered support to meet the increasing trade deficit.