Pakistan’s reserves at three-year high after $1.3B inflow from IMF

Pakistan's foreign exchange reserves have reached a 45-month high after receiving a tranche of $1.3 billion from the International Monetary Fund (IMF).

The State Bank of Pakistan (SBP) foreign exchange reserves reached $15.89 billion by the week ending December 12. This is the highest reserves since $15.83 billion on March 11, 2022.

Pakistan’s liquid foreign exchange reserves climbed to $21.09 billion as of December 12, bolstered by fresh inflows from the IMF, the country’s central bank said Wednesday.

According to the SBP, total liquid foreign reserves stood at $21.09 billion. Of this amount, $15.89 billion was held by the central bank, while net foreign reserves with commercial banks totaled $5.20 billion.

The SBP said its foreign exchange reserves rose by $1.3 billion during the week ended December 12, reaching $15.89 billion. The increase was mainly driven by the receipt of around $1.2 billion from the IMF under its Extended Fund Facility and the Resilience and Sustainability Facility.

The latest inflow provides temporary relief to Pakistan’s external account, which has been under pressure from high debt repayments, elevated import bills and a fragile balance-of-payments position.

Analysts have said the IMF disbursement has strengthened short-term buffers but cautioned that sustainability remains tied to continued reforms.

“The jump in reserves is clearly IMF-driven and helps stabilize market sentiment in the near term,” said a Karachi-based economist. “However, reserves remain modest relative to Pakistan’s external financing needs, and maintaining this level will depend on program compliance, timely bilateral inflows and a durable improvement in exports and remittances.”

The IMF-supported programs require Pakistan to pursue fiscal consolidation, market-based exchange rate policies and structural reforms aimed at restoring macroeconomic stability and supporting long-term growth.