Pakistan’s foreign exchange reserves cross $20B, highest in three years

Pakistan’s total foreign exchange reserves have surged past $20 billion, reaching a three-year high, following a wave of inflows from international financial institutions and commercial loans from Chinese banks.

As of July 4, 2025, the country’s overall reserves stood at $20.028 billion. According to official data, the State Bank of Pakistan (SBP) held $14.502 billion, while commercial banks accounted for $5.526 billion in net foreign reserves.

During the week ending July 4, SBP’s reserves rose by $1.774 billion, driven by official inflows, the central bank confirmed.

The last time Pakistan’s total reserves crossed the $21 billion mark was in March 2022.

Since June 20, 2025, SBP’s foreign exchange reserves have increased by $5.437 billion, primarily due to inflows from global lenders. This includes $3.1 billion in commercial loans received on behalf of the Government of Pakistan and more than $500 million in multilateral funding.

SBP Governor Jameel Ahmad, speaking in January, had projected that despite significant external debt obligations, the central bank’s reserves would exceed $14 billion by the end of FY25 -- a target that has now been met.

Economists say this substantial rise reflects strengthening macroeconomic fundamentals, supported by an improved current account balance, increased home remittances, and more disciplined fiscal management.

“The recent inflows are expected to further boost confidence in Pakistan’s economic recovery and support ongoing efforts to ensure external stability and sustainable growth,” they added.