Pakistan’s foreign reserves surge to $16.02 billion

Foreign reserves held by the State Bank of Pakistan increased by $49 million, reaching $11.15 billion during the week ending March 14, 2025.

Combined with net foreign reserves held by commercial banks, which stood at $4.87 billion, the country’s total liquid foreign reserves rose to $16.02 billion, official statement said Thursday.

Reserves have increased due to buying from forex companies and lesser debt payments

Earlier, Governor of the State Bank expressed optimism that remittances are expected to further improve, potentially prompting a revision in economic projections.

Pakistan aims to generate approximately $36 billion in remittances by the end of the current fiscal year, officials noted.

A report by JS Global highlighted that remittances have consistently outpaced the trade deficit, with the services deficit also remaining manageable.

Monthly remittance inflows have averaged $3 billion during the fiscal year, significantly higher than the $2.3–2.4 billion monthly average seen previously. In February 2025, remittances surged 39% year-over-year, fueled by the onset of Ramadan, a period traditionally marked by higher inflows.

The robust remittance performance has provided critical support to Pakistan’s economy, analysts said, as the country continues efforts to stabilize its fiscal health and meet economic targets.