Pakistan’s foreign exchange reserves increased by $16 million during the week ended October 9, reaching $26.863 billion, according to data released by the State Bank of Pakistan (SBP) on Thursday.

The central bank’s foreign exchange reserves rose to $21.469 billion during the reporting week. Meanwhile, commercial banks held an additional $5.393 billion in reserves.

Together, these holdings brought the country’s total liquid foreign exchange reserves to $26.863 billion.

Eurobond inflows support reserves

Pakistan’s reserves have benefited from a $3 billion inflow linked to the sale of Eurobonds, according to the supplied report. The increase has come despite a widening trade deficit, which can put pressure on the country’s external account.

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However, changes in foreign exchange reserves also depend on debt repayments, import payments and other external inflows and outflows.

The latest figures show a modest weekly increase in the SBP’s holdings, while the country’s total reserves remained above $26 billion.