Karachi, March 6, 2025 – Pakistan’s total foreign exchange reserves declined by $52 million during the past week, the State Bank of Pakistan (SBP) reported on Thursday.
The country’s reserves stood at $15.874 billion as of February 28, 2025, compared to $15.926 billion recorded on February 21, 2025.
Despite the overall decline, the foreign exchange reserves held by the SBP saw a modest increase of $27 million, reaching $11.25 billion by the end of the week. This was up from $11.223 billion recorded a week earlier. However, the reserves maintained by commercial banks experienced a significant drop of $79 million, bringing their total down to $4.624 billion from the previous level of $4.703 billion.
The fluctuations in reserves reflect the ongoing pressures on Pakistan’s external account, as the country continues to manage its import payments and external debt obligations. Analysts believe that the upcoming review by the International Monetary Fund (IMF) will play a crucial role in determining the future trajectory of Pakistan’s foreign exchange reserves. If the review concludes successfully, Pakistan is expected to receive the second tranche of the $7 billion Extended Fund Facility, which could provide much-needed support to the SBP’s reserves and stabilize the country’s external sector.
Pakistan’s reserves have remained under strain due to a combination of factors, including fluctuating export earnings, a widening current account deficit, and increased external debt repayments. The SBP has been actively managing the country’s reserves through various measures, including market interventions and securing financial assistance from friendly nations and multilateral institutions.
A successful IMF review could also unlock additional funding from bilateral and multilateral partners, further strengthening the SBP’s reserves. Market experts emphasize that improving the reserves position is critical for stabilizing the rupee and maintaining investor confidence in Pakistan’s economy.
The government and the SBP remain optimistic that foreign exchange reserves will improve in the coming months as Pakistan continues negotiations with international lenders and focuses on increasing exports and remittances. A stable reserves position will be key to ensuring macroeconomic stability and sustaining economic growth.