Pakistan, March 28 -- The State Bank of Pakistan (SBP) has acquired $5.5 billion from the banking market in the first seven months of the fiscal year 2024-25. These dollar purchases, part of the SBP's regular currency market interventions, show a steady increase each month. The central bank's dollar buying activity included significant amounts such as $1.026 billion in October and $946 million in September. However, the SBP's total dollar purchases are expected to surpass the country's IMF borrowing over the next three years.

Despite these efforts, Pakistan's foreign exchange reserves have decreased by over $500 million in the past week. As of last week, the reserves fell to a six-month low of $10.6 billion. This signals ongoing vulnerab...