KARACHI: Pakistan’s liquid foreign exchange (forex) reserves witnessed a notable increase during the week ended March 1, 2025, according to data released by the State Bank of Pakistan (SBP) on Thursday. The total forex reserves rose by $140 million, reaching $14.956 billion, compared to $14.816 billion recorded in the previous week.
A breakdown of the data reveals that the forex reserves held by the central bank climbed by $80 million, bringing the total to $8.116 billion by the end of the reviewed week. In the preceding week, the SBP’s reserves had stood at $8.036 billion.
In addition to the central bank’s performance, commercial banks also reported an increase in their reserves, which rose by $60 million to $6.839 billion, up from $6.779 billion a week earlier. This collective growth in foreign reserves reflects improved external inflows and potentially higher remittance levels or successful external financing efforts.
The improvement in Pakistan’s forex reserves is a positive sign for the country’s external sector, helping to enhance financial stability, support the local currency, and bolster investor confidence. Higher reserves provide a buffer against external shocks, aid in meeting import and debt repayment obligations, and support the smooth functioning of the foreign exchange (forex) market.
Economic analysts suggest that maintaining and building adequate forex reserves is crucial for stabilizing the economy, especially amid ongoing challenges related to inflation, debt servicing, and current account pressures.
The SBP is expected to continue its cautious monetary management and build up forex reserves through policy reforms and external funding support.