Karachi, July 10, 2025 – Pakistan’s foreign exchange (forex) reserves have surged past the $20 billion threshold for the first time in over three years, marking a significant milestone in the country’s economic recovery.
The State Bank of Pakistan (SBP) released updated figures on Thursday, showing a sharp increase in total forex reserves by the week ending July 4, 2025.
According to SBP data, Pakistan’s total forex reserves rose by a substantial $1.938 billion during the week, reaching $20.029 billion. This is a major improvement from the $18.091 billion recorded just a week earlier, on June 27, 2025. The last time Pakistan’s forex reserves had crossed the $20 billion level was on March 18, 2022, when they stood at $21.44 billion before a prolonged period of decline.
The increase was driven primarily by official inflows, as reflected in the SBP’s own reserves, which jumped by $1.774 billion to reach $14.502 billion during the week under review. A week earlier, the central bank’s official forex reserves were at $12.728 billion. The SBP has attributed the rise to significant receipt of foreign funds from international partners and multilateral institutions.
Meanwhile, forex reserves held by commercial banks also witnessed a positive trend. The reserves of the private banking sector rose by $164 million, settling at $5.527 billion, compared to $5.363 billion the previous week. This improvement in private sector reserves reflects growing confidence in Pakistan’s financial system, as well as higher inflows through remittances and export proceeds.
Economists have described the development as a turning point for Pakistan, indicating improved external account stability. With total forex reserves now exceeding $20 billion, the country has bolstered its ability to meet import payments, stabilize the exchange rate, and build investor confidence.
The SBP is expected to continue its efforts to further enhance forex reserves through prudent external borrowing, disciplined monetary policy, and strategic engagement with global lenders.
This recovery in forex reserves comes as a relief to policymakers who have struggled with balance of payment pressures and dwindling external buffers over the past few years.