KARACHI: The State Bank of Pakistan (SBP) has received $500 million from the Asian Development Bank (ADB) under the Climate Change and Disaster Resilience Enhancement Program (CDREP). The inflow, confirmed by the SBP on Friday, will strengthen Pakistan’s foreign exchange reserves.
“These funds will be reflected in SBP’s reserves for the week ending November 29, 2024,” the central bank stated, adding that reserves are expected to surpass $12 billion by the end of the month, up from $11.42 billion as of November 22, 2024.
The loan agreement with ADB, signed earlier this month, is aimed at enhancing Pakistan’s capacity to manage natural disasters and climate risks. Analysts predict this inflow, along with robust workers’ remittances, export growth, and IMF support, will further improve Pakistan’s external account position.
The country recorded a current account surplus of $218 million in July-October FY25, compared to a $1.528 billion deficit in the same period last year. Workers’ remittances rose by 35%, reaching $11.85 billion during the same period.
The strengthening of reserves signals positive economic momentum, aiding stability amidst global challenges.
Story by Rizwan Bhatti
