KARACHI: In a major achievement on the economic front, the State Bank of Pakistan’s (SBP) foreign reserves jumped by $5 billion to reach $14.51 billion end of the last fiscal year (FY25), surpassing the International Monetary Fund’s (IMF) target of $13.9 billion. Economists noted that this milestone was made possible through the joint efforts of the SBP and the federal government as they successfully stabilized the external sector by implementing prudent macroeconomic policies and securing timely external inflows.
According to provisional data released on Wednesday, SBPs foreign reserves rose by $5.12 billion during the last fiscal year. With the current increase, the foreign exchange reserves held by the SBP reached the $14.51 billion mark on 30 June 2025 increased from $9.39 billion as on June 30, 2024.
This surge is attributed to substantial foreign inflows received last week from international financial institutions and lenders. The State Bank received $3.1 billion in commercial loans on behalf of the Government of Pakistan, along with over $500 million in multilateral funding, significantly boosting the country’s foreign exchange reserves.
SBP’s reserves drop over $2bn in a week on major debt repayments
Governor SBP Jameel Ahmed in January this year projected that despite massive external debt servicing, State Bank of Pakistan’s foreign exchange reserves will cross the $14 billion mark at the end of FY25.
Economists said that this significant surge reflects strengthening macroeconomic fundamentals, driven by an improved current account balance, higher home remittances inflows, and disciplined fiscal management. “The recent inflows are expected to further boost confidence in Pakistan’s economic recovery and support ongoing efforts to ensure external stability and sustainable growth”, they added.
Muhammad Sohail, CEO of Topline Securities, said that thanks to the strong performance of the State Bank of Pakistan (SBP) and the government, the country’s foreign exchange reserves have exceeded the IMF’s target of $13.9 billion-a major achievement.
He described this as a positive signal for Pakistan’s macroeconomic stability, adding that the milestone reflects improved external account management, rising remittances, stronger exports, and disciplined policy implementation under IMF guidance.
It may be mentioned here that during the week ended on Jun 20, 2025, SBP foreign reserves decreased by $ 2.657 billion to $ 9.064 billion due to government of Pakistan’s external debt repayments, mainly repayment of commercial borrowing. However, SBP has successfully maintained the reserves by bringing over $5 billion inflows in a week.
Copyright Business Recorder, 2025