Islamabad: Pakistan’s foreign exchange reserves have increased by USD 231 million, reaching a total of USD 15.483 billion during the week ending May 2, according to a statement from the State Bank of Pakistan (SBP) on Thursday.
The reserves of the central bank alone rose by USD 118 million to USD 10.332 billion, while the reserves held by commercial banks also saw a boost, climbing by USD 113 million to USD 5.15 billion.
The increase in foreign reserves comes amid rising geopolitical tensions between Pakistan and India, following retaliatory attacks linked to a militant incident last month in occupied Kashmir. Despite these challenges, Pakistan’s foreign reserves have shown resilience, bolstered by strong remittances and the SBP’s strategic dollar purchases from the currency market.
Looking ahead, Pakistan is expected to receive a USD 1 billion tranche from its USD 7 billion bailout program with the International Monetary Fund (IMF). The IMF executive board is set to meet on Friday to review Pakistan’s progress and approve the release of this loan installment.
In its latest monetary policy statement, the SBP noted that the current account surplus, supported by remittance inflows and the SBP’s efforts to stabilize the forex market, has played a key role in strengthening the country’s foreign reserves. This surplus has also helped mitigate the effects of significant debt repayments.
The SBP has projected that the current account will remain in surplus throughout fiscal year 2025, but warned that weak financial inflows—due to high debt repayments and delays in the realization of planned official inflows—continue to pose challenges. However, with the anticipated arrival of these official inflows, the SBP expects its forex reserves to rise to USD 14 billion by June 2025.
The central bank also expects further growth in its reserves into fiscal year 2026, although it has cautioned that external risks, particularly from global economic uncertainties, could impact the outlook.
Pakistan’s total external debt servicing requirement for the current fiscal year stands at USD 26 billion, with USD 16 billion expected to be rolled over. The country has already secured most of the rollovers, and the remaining USD 1.3 billion of debt repayments are due in May and June 2025.
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