Karachi, July 31, 2025 – Pakistan’s foreign exchange (forex) reserves witnessed a notable decline of $311 million during the week ended July 25, 2025, according to official data released by the State Bank of Pakistan (SBP) and reported by APP on Thursday.
The total liquid forex reserves of the country stood at $19.607 billion, down from $19.918 billion recorded a week earlier on July 18, 2025. This drop reflects pressure on the country’s external account as Pakistan continues to manage its fiscal and debt obligations.
A breakdown of the data shows that SBP-held official forex reserves fell by $153 million, reaching $14.304 billion by July 25, 2025, compared to $14.547 billion a week earlier. Similarly, reserves held by commercial banks also recorded a decline of $158 million, ending at $5.303 billion against the previous level of $5.461 billion.
Despite this weekly drop, Pakistan’s central bank remains confident about the trajectory of forex reserves going forward. During a recent analyst briefing, the SBP governor stated that Pakistan entered the fiscal year 2025–26 with $14.5 billion in official reserves. The government aims to increase this to $15.5 billion by December 2025 and $17.5 billion by the end of June 2026, even after external debt repayments.
This forecast is underpinned by a more stable macroeconomic outlook, improved sovereign debt indicators, and recent credit rating upgrades from two global agencies, with another upgrade expected. The central bank also indicated plans to resume international bond issuance, such as Eurobonds and Sukuk, which would help raise commercial funds and further build Pakistan’s forex reserves.