Pakistan’s foreign reserves rise to $15.25 billion amid strengthening economic position

The State Bank of Pakistan’s (SBP) foreign reserves increased by $9 million, reaching $10.214 billion in the week ending April 2025, the central bank said Thursday.

Country's total liquid foreign reserves, including $5.03 billion held by commercial banks, stood at $15.25 billion.

The buildup in SBP’s reserves was driven primarily by a favorable current account balance, enabling the central bank to purchase $5 billion from the interbank market during H1 FY25.

The purchases were aimed at strengthening external buffers while meeting international payment obligations, SBP said.

Multilateral inflows, including those from the International Monetary Fund (IMF), further supported Pakistan’s foreign reserves. SBP attributed the rise in reserves to improving external account conditions, increased foreign investment inflows, and the disbursement of the first tranche under the IMF’s Extended Fund Facility (EFF).

Despite the reserve increase, SBP warned of liquidity challenges stemming from a rise in short-term external debt. The central bank emphasized the need for sustainable solutions to manage external debt and servicing obligations effectively.