Blog | One Homes

A Staggering Turn in Economy With Foreign Reserves Hitting $16.6 Billion

Written by Saliha Aziz | Dec 6, 2024 1:15:06 PM

Pakistan is taking bold steps to keep investor confidence strong. Since the recent data shows foreign reserves at $16.6 billion, the country’s financial system is on track for the next stage of a boom that is backed by solid international support from key partner nations.

 

To play our part in this continued progress, One Homes, a British investment group, have invested upwards of $400 million into Pakistan’s economy. We are building living destinations that connect overseas Pakistanis with their roots so that they can capitalise on the opportunities in their motherland.

Foreign Reserves Surge with ADB Inflows

The State Bank of Pakistan (SBP), in November of 2024, recorded a total of liquid foreign reserves at $16.6 billion. Most of it, amounting to $12 billion, is held by the SBP, while the remaining, is held by the commercial banks. 

 

The growth was a direct reflection of the $500 million inflow from the Asian Development Bank (ADB). this development grew the SBP reserves by $620 million during the last week of November.

A $3 Billion Extension by Saudi Arabia

The strong ties between Saudi Arabia and Pakistan have significantly contributed to the growth of foreign reserves and, ultimately, to economic stability. 

 

Pakistan saw an extension in the terms for the $3 billion deposit by the Saudi Fund for Development (SFD). This extension highlights Saudi Arabia's continued confidence in Pakistan's potential and strengthens the country's financial position.

 

The strong ties between Saudi Arabia and Pakistan have significantly contributed to the growth of foreign reserves and, ultimately, to economic stability.

Stable Currency and Rising Gold Prices

A notable contribution towards foreign reserves has been the stable currency and rising gold prices in Pakistan. The Pakistani rupee exhibited notable stability in the currency market, signalling growing investor confidence. The dollar has remained steady at an average rate of 277 PKR, only witnessing minor fluctuations over the past few months. Experts, including Zafar Paracha of the Exchange Companies Association of Pakistan (ECAP), regard this stability as a strong indicator of Pakistan's economic resilience.

 

Simultaneously, gold prices surged locally in cohesion with global trends. In Pakistan, gold per tola increased by Rs500 to Rs275,700. Globally, spot gold held steady at $2,649.69 per ounce, with US gold futures easing slightly to $2,673.30 per ounce. This growth reflects Pakistan's synergy with the developed markets, further bolstering investor interest in the local economy. 

Improved Economic Indicators Foster Optimism

Economic experts note that Pakistan is showing encouraging signs of stability. This optimism is marked by the positive outlook on various key indicators.

 

Key Highlights:

 

  • The trade deficit of Pakistan dropped by 19% in the last November 2024. 
  • The inflation levels hit single digits for the first time in 3 years, dropping to 9.6%.
  • Savills report on Pakistan’s real estate reflects an 8-10% growth in the upcoming years. 
  • $8.8 billion of remittances were recorded in the first quarter of fiscal year 2025.

These factors collectively inspire confidence among investors, strengthening the outlook for Pakistan’s economic trajectory.

Why Now is the Right Time to Invest

As reserves grow and economic indicators stabilise, Pakistan presents a promising landscape for investments. One Homes continues to empower overseas Pakistanis with secure, transparent real estate investments. With over $400 million invested in Pakistan, we are dedicated to providing luxury developments that combine peace of mind with high-quality living.

 

Reclaim a piece of your homeland through One Homes’ premium real estate offerings. With international standards of transparency and quality, we provide overseas Pakistanis with peace of mind and profitable opportunities.

 

Discover how you can invest in Pakistan with confidence.