Pakistan's foreign reserves marginally rise amid economic recovery

Foreign exchange reserves held by the State Bank of Pakistan (SBP) increased by $71 million to $10.4 billion for the week ending May 9, 2025, according to official data released Thursday.

Net foreign reserves held by commercial banks stood at $5.21 billion, bringing the total liquid foreign reserves to $15.6 billion.

Pakistan’s key economic indicators and external sector sustainability have shown signs of improvement, despite recent declines in SBP’s reserves due to debt repayments. Analysts expect reserves to reach around $14 billion by June, supported by strong remittances, improved exports, and anticipated foreign inflows.

“The quality of foreign exchange reserves is improving, as forward liabilities have been significantly reduced, enhancing reserve sustainability,” said an analyst at Arif Habib Limited.

SBP interventions have continued into 2025, contributing to the buildup of the country’s foreign exchange reserves, reinforcing Pakistan’s economic outlook.