Pakistan’s foreign reserves climb as current account posts surplus

The State Bank of Pakistan (SBP) reported an increase in foreign exchange reserves, which rose by $118 million to $10.33 billion during the week ending May 2, boosting total liquid foreign reserves to $15.48 billion.

The country's current account recorded a sizable surplus of $1.2 billion in March, driven largely by record-high workers' remittances. This surplus, along with SBP’s foreign exchange purchases, helped cushion the impact of significant debt repayments on the central bank's reserves.

Despite weak net financial inflows through March, mainly due to large debt repayments and delays in official funding, the SBP’s Monetary Policy Committee (MPC) expects the current account to remain in surplus for fiscal year 2025. The bank forecasts its foreign exchange reserves will rise to $14 billion by June, supported by the anticipated realization of planned official inflows.

Looking ahead, SBP anticipates further reserve accumulation in fiscal year 2026, citing a moderate current account deficit and improved financial inflows as key drivers of continued stability.