Karachi, May 22, 2025 — Pakistan’s foreign exchange (forex) reserves have witnessed a significant increase, reaching $16.65 billion, fueled by the latest inflows from the International Monetary Fund (IMF).
This uptick offers some breathing room for the country’s external sector amid ongoing economic reforms and international financial obligations.
According to the latest data released by the State Bank of Pakistan (SBP), the overall forex reserves rose by $1.035 billion during the week ending May 16, 2025. This is a notable improvement from the previous week’s level of $15.614 billion recorded on May 9, 2025.
The SBP’s own official forex reserves showed a substantial gain, rising to $11.447 billion—an increase of $1.044 billion from $10.403 billion a week earlier. The central bank attributed this surge primarily to the receipt of the second tranche from the IMF under the Extended Fund Facility (EFF). On May 13, 2025, Pakistan received SDR 760 million (approximately $1.023 billion) from the IMF, boosting the central bank’s holdings and reinforcing investor confidence in the country’s economic trajectory.
However, in contrast to the central bank’s gain, the forex reserves held by commercial banks showed a marginal decline. By the week ending May 16, 2025, commercial banks held $5.202 billion in reserves, a slight dip of $9 million compared to $5.211 billion a week earlier.
The rise in forex reserves comes at a crucial time for Pakistan, as the country continues to navigate fiscal challenges and seeks to stabilize its external accounts. With upcoming debt payments and import needs, maintaining a robust level of forex reserves is vital for ensuring macroeconomic stability.
This latest boost in forex reserves not only strengthens Pakistan’s financial position but also enhances the country’s ability to meet short-term obligations and support the value of the rupee. As Pakistan continues to engage with international lenders and implements structural reforms, sustained growth in forex reserves will remain a key economic priority.