Karachi: In a significant development on the economic front, the State Bank of Pakistan (SBP) has reported that its foreign exchange reserves rose to USD 14.51 billion by the end of the fiscal year 2024–25, surpassing the International Monetary Fund’s (IMF) set target of USD 13.9 billion.
According to provisional data released on Wednesday, SBP’s reserves increased by USD 5.12 billion over the fiscal year, climbing from USD 9.39 billion as of June 30, 2024, to USD 14.51 billion by June 30, 2025. This marks one of the strongest reserve performances in recent years and comes despite significant external debt servicing pressures.
The increase is largely attributed to a series of timely foreign inflows, including USD 3.1 billion in commercial loans and over USD 500 million from multilateral sources in the final week of June. These inflows played a pivotal role in boosting Pakistan’s external buffers and meeting the IMF’s Extended Fund Facility (EFF) benchmarks.
Governor SBP Jameel Ahmed, earlier this year, had forecast that foreign reserves could surpass the USD 14 billion mark by the end of FY25, despite the country’s heavy external repayment obligations. His projection proved accurate, as the central bank secured critical support in the final stretch of the fiscal year.
Economists view this achievement as a positive indicator of improving macroeconomic fundamentals. Factors such as a reduced current account deficit, stronger remittance flows, and disciplined fiscal policy under IMF guidance are being credited for the upward trend.
Commenting on the development, Muhammad Sohail, CEO of Topline Securities, said the reserves exceeding the IMF target signal a stabilizing external sector. “It reflects improved external account management, rising remittances, and stronger export performance,” he noted.
While the reserves briefly fell during the week ending June 20 — dipping by USD 2.657 billion to USD 9.064 billion due to debt repayments — the SBP managed to recover the position with swift inflows in the final days of the fiscal year.
Analysts suggest that the reserve boost will enhance investor confidence, strengthen Pakistan’s negotiating position with international lenders, and provide a cushion against external shocks in the months ahead.
The development comes as Pakistan prepares for fresh talks with the IMF and other global institutions, with reserve stability likely to be a key topic of engagement.
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