Karachi, December 18, 2025 – Pakistan’s total foreign exchange reserves have surpassed the $21 billion mark following the recent disbursement of a loan tranche by the International Monetary Fund (IMF), providing much-needed support to the country’s external finances.
According to the State Bank of Pakistan’s (SBP) weekly report, the country’s overall foreign exchange reserves rose by $1.477 billion during the week ending December 18, 2025, reaching $21.089 billion. The sharp increase reflects the inflow of IMF funds as well as improved liquidity conditions in the banking system.
The SBP’s own reserves witnessed a significant boost, increasing by $1.3 billion to stand at $15.887 billion by the end of the reporting week. This rise came after the IMF Executive Board approved Pakistan’s tranche on December 8, 2025, under the ongoing IMF programme. Subsequently, the SBP received $1.2 billion on December 11, which played a key role in strengthening the central bank’s reserve position.
Meanwhile, foreign exchange reserves held by commercial banks also recorded an increase of $177 million, reaching $5.202 billion. The combined growth in SBP and commercial bank reserves indicates improved confidence in the country’s external sector management.
Economic experts believe that the increase in foreign exchange reserves will help stabilise Pakistan’s balance of payments position, ease pressure on the local currency, and ensure smoother servicing of external debt obligations. Higher reserves are also expected to enhance investor confidence and provide the government with greater flexibility in managing imports and meeting foreign payment requirements.
Analysts note that sustained inflows, disciplined fiscal management, and continued engagement with international lenders will be crucial for maintaining reserve stability in the coming months and supporting Pakistan’s broader economic recovery.