Karachi: Pakistan’s foreign exchange reserves held by the State Bank of Pakistan (SBP) increased by USD 34 million to USD 14.336 billion during the week ending September 5, the central bank said on Thursday.
The country’s total liquid foreign reserves rose by USD 21 million to USD 19.681 billion. However, commercial banks’ reserves dropped by USD 12 million to USD 5.345 billion. The SBP’s reserves are now sufficient to cover 2.63 months of imports.
This marks the fifth consecutive weekly increase in SBP reserves, though the central bank did not specify the reasons for the continued rise. Analysts attribute the improvement to stronger remittances and the SBP’s steady foreign exchange purchases.
Remittances from overseas Pakistanis climbed 7 percent year-on-year to USD 6.4 billion during the first two months of FY2025-26. In August alone, remittances stood at USD 3.1 billion, up 7 percent from the same period last year but down 2 percent compared with July.
Meanwhile, Pakistan’s total external debt and liabilities rose to USD 134.97 billion as of June 30, 2025, from USD 131.04 billion a year earlier. Debt servicing obligations also grew, with total payments reaching USD 18.049 billion in FY25, compared with USD 16.932 billion in FY24. Of this amount, USD 5.338 billion was paid in interest, down from USD 11.475 billion the previous year, while principal repayments surged to USD 12.711 billion from USD 5.458 billion in FY24.
According to a report by Topline Securities, Pakistan’s external debt-to-GDP ratio remained unchanged in FY25, staying at a seven-year low. In USD terms, external public debt rose by 5.6 percent, while in rupee terms it increased by 7.6 percent—both below nominal GDP growth of 8.2 percent. The report also noted that external debt servicing to FX reserves stood at 115 percent in FY25, but this ratio is expected to improve in FY26 as reserves are projected to rise by June 2026.
Samra Zulfiqar, a real estate analyst at Zameen.com, is passionate about finding projects that offer buyers the best returns. Her keen insights spotlight the market’s most promising opportunities.
