Pakistan’s foreign exchange reserves have inched up by $21 million during the past week, raising the total stock to $19.681 billion. Experts highlight that this amount now provides coverage for around 70 days of imports. However, according to IMF standards, reserves must be enough to cover at least 90 days of imports.
The State Bank of Pakistan (SBP) reported that its own dollar holdings rose by $34 million during the week, reaching $14.3 billion. At the same time, commercial banks saw a fall of $12 million in their deposits, which dropped to $5.3 billion.
While the modest increase in foreign exchange reserves offered some relief, concerns over financial governance dominated discussions in Islamabad. On Wednesday, the Senate Standing Committee on Finance recommended a major change in authority regarding the salary of the SBP Governor. The committee proposed that this power should no longer rest with the SBP board but instead require direct government approval.
Senator Anusha Rehman urged the committee to push for legislation that would formalise this recommendation. Alongside the debate, lawmakers also raised eyebrows over a sharp hike of Rs380 million in the salaries of officials at the Securities and Exchange Commission of Pakistan (SECP).
The committee disclosed that as of October 2023, the SBP Governor’s monthly salary was Rs4 million, excluding allowances and additional benefits. In light of this revelation, the Senate panel has summoned the Governor to provide details of the salary structure.
Despite these governance concerns, policymakers remain focused on strengthening Pakistan’s foreign exchange reserves. The slight weekly rise reflects stability, but experts warn that the cushion remains below IMF standards. Continuous monitoring, they argue, is critical to safeguard economic stability and ensure import sustainability.