Karachi, February 27, 2025 – Pakistan’s foreign exchange reserves experienced a decline of $23 million during the past week, as reported by the State Bank of Pakistan (SBP) on Thursday.
The total net reserves of the country fell to $15.925 billion by the end of the week on February 21, 2025, compared to $15.948 billion recorded on February 14, 2025.
Despite the overall decline, the official foreign exchange reserves held by the SBP showed a slight increase. The SBP reported that its reserves rose by $20 million, bringing the total to $11.222 billion by the week’s end, compared to $11.202 billion a week earlier. The SBP remains optimistic about future increases in reserves, particularly following its successful negotiations with the International Monetary Fund (IMF), which are expected to bring in additional financial inflows.
While the SBP’s reserves showed some improvement, the foreign exchange reserves held by commercial banks faced a significant drop. The reserves managed by commercial banks declined by $43 million, settling at $4.703 billion by February 21, 2025, in contrast to $4.746 billion a week earlier. This drop highlights ongoing challenges in the financial sector and underscores the importance of maintaining stability in foreign exchange reserves.
The SBP continues to monitor the situation closely, implementing measures to safeguard and bolster its reserves amid fluctuating economic conditions. The central bank remains hopeful that incoming funds from external sources, including the IMF, will help stabilize and potentially enhance the country’s foreign exchange reserves in the coming weeks. Strengthening reserves is crucial for Pakistan’s economic resilience, ensuring the country’s ability to meet external obligations and maintain confidence in the financial markets.
Going forward, the SBP is expected to take further steps to manage liquidity and stabilize the reserves situation. The impact of international financial agreements and domestic economic policies will play a pivotal role in determining the trajectory of Pakistan’s foreign exchange reserves. With continuous monitoring and strategic financial management, the SBP aims to maintain sufficient reserves to support economic growth and stability.
