The State Bank of Pakistan (SBP) said that its foreign exchange reserves grew by $258 million to $4.601 billion, ending one of its most unsettling losing runs in years. The central bank did not identify the source of the inflows, however.

The SBP reported that the nation's total liquid foreign reserves were $10.44 billion, while its net foreign reserves held by commercial banks were $5.84 billion.

After declining by $3.6 billion over the previous eight weeks, the SBP reserves have finally defied the trend, according to a note from Arif Habib Ltd.

The SBP's FX holdings have dropped by 22.11% to their lowest level since February 2014.

S With the rupee falling and inflation at decades-high levels, Pakistan's economy has collapsed along with a simmering political crisis, but disastrous floods and a worldwide energy crisis have added to the strain.

As the nation strives to reduce imports amid a dollar shortage, the reserves, which fell to their lowest level since February 2014, would now only provide import cover worth 0.82 months.

A day earlier, Jameel Ahmed, the governor of the State Bank of Pakistan, predicted that the position of the nation's foreign exchange reserves will improve over time.

The SBP governor stated in his talk to the Federation of Pakistan Chambers of Commerce and Industry that "we are expected to witness inflows from next week forward, which will alleviate strain on our foreign exchange reserves" (FPCCI).

The situation of foreign exchange reserves, which are currently at their lowest level since February 2014, will improve as a result of the inflows, according to Ahmad, opening the door for the lifting of import restrictions.

In an effort to prevent a balance of payments crisis and stabilise the economy, Pakistan prohibited the import of all luxuries in May. However, the relevant authorities relaxed limitations on the import of some commodities to help the businesses after harsh criticism from stakeholders.

To the dismay of many importers and firms in Pakistan, who claimed these constraints as the cause for closing or reducing their operations, the SBP imposed import restrictions earlier last year as a result of the low reserves.

The SBP director gave the businesspeople assurance that dollar inflows will begin to increase from the following week, and decisions about import curbs would then be made.