Karachi, May 29, 2025 – Pakistan’s total net foreign exchange (forex) reserves recorded a slight decrease during the week ended May 23, 2025, according to the latest data released by the State Bank of Pakistan (SBP). The net forex reserves fell by $12 million, settling at $16.637 billion, compared to $16.647 billion reported a week earlier, on May 16, 2025.
Despite this minor decline in the overall reserves, the SBP’s official forex reserves posted an increase. The central bank’s holdings rose by $69 million, reaching $11.516 billion by the end of the reporting week. This increase reflects continued efforts by the SBP to strengthen Pakistan’s external account and build up its reserves buffer.
A key contributor to the recent rise in SBP’s reserves was the inflow of $1 billion from the International Monetary Fund (IMF). This was received as the second tranche under the Extended Fund Facility (EFF), providing much-needed support to Pakistan’s balance of payments and enhancing the country’s foreign currency liquidity.
On the other hand, forex reserves held by commercial banks showed a downward trend. Their reserves declined by $81 million, falling to $5.121 billion from the previous week’s $5.202 billion. The fluctuation in commercial bank reserves may reflect higher demand for foreign exchange by the private sector or external debt-related payments.
Overall, the SBP continues to play a crucial role in stabilizing Pakistan’s forex position through prudent monetary management and timely inflows from multilateral partners. The central bank’s strategy to shore up reserves remains vital for maintaining macroeconomic stability, managing external obligations, and controlling exchange rate volatility.
As of now, the total forex reserves of Pakistan stand at $16.637 billion, with the SBP maintaining $11.516 billion and commercial banks holding $5.121 billion. Continued monitoring and policy actions by the SBP will remain critical in ensuring adequate reserves to meet future external financing needs.