Pakistan's foreign reserves inch up to $15.87 billion

Foreign reserves held by the State Bank of Pakistan (SBP) saw a marginal increase of $27 million, reaching $11.25 billion for the week ending February 28, 2025.

The net foreign reserves held by commercial banks climbed to $4.62 billion, bringing the total liquid reserves of the country to $15.87 billion.

SBP projects to conclude the fiscal year 2025 with reserves around $13 billion.

For the same fiscal year, external debt repayments are anticipated to be $26.1 billion. With expectations to roll over $16.4 billion of this amount, the net repayment would stand at $3.7 billion.

The ongoing IMF mission in Pakistan has fueled market optimism for the release of the second tranche of the $7 billion extended fund facility. Following the anticipated IMF disbursement, Pakistan is poised to attract inflows from both multilateral and bilateral lenders.

In an effort to further strengthen the external account, the country is initiating measures to boost Foreign Direct Investment (FDI), enhance export performance, and eventually re-enter international capital markets. These initiatives are expected to bolster the overall financial outlook for Pakistan.