Karachi, February 13, 2025 — The State Bank of Pakistan (SBP) announced a decline of $252 million in its official foreign exchange reserves during the past week, highlighting ongoing external payment obligations.
According to the SBP, the central bank’s foreign exchange reserves fell to $11.166 billion as of the week ending February 7, 2025. This marks a decrease from $11.418 billion reported a week earlier on January 31, 2025. The SBP attributed the reduction to external payments made by the government of Pakistan, which include debt servicing and other international financial commitments.
The SBP emphasized that such fluctuations in reserves are part of routine external payment obligations and do not necessarily indicate structural weaknesses. Analysts noted that these payments were anticipated as part of the government’s ongoing debt management strategy.
While the SBP’s reserves saw a decline, the foreign exchange reserves held by commercial banks showed a positive trend. Commercial banks’ reserves increased by $70 million, reaching $4.696 billion by February 7, 2025, compared to $4.626 billion a week earlier. This increase reflects healthy inflows into the banking system despite the external outflows reported by the SBP.
The combined foreign exchange reserves of the SBP and commercial banks stood at $15.862 billion as of February 7, 2025. This represents a net decline of $182 million from the $16.044 billion reported a week earlier.
Market analysts are closely monitoring the SBP’s reserves as a key indicator of Pakistan’s financial stability. The SBP continues to implement policies aimed at bolstering reserves through measures such as encouraging remittance inflows, promoting exports, and managing external liabilities.
Looking forward, the SBP is expected to remain vigilant in its efforts to maintain reserve adequacy amid external economic pressures. The central bank’s policies regarding interest rates, exchange rate management, and external financing will play a crucial role in shaping the future trajectory of the reserves.
The SBP’s proactive approach in managing these reserves will be critical in ensuring Pakistan’s financial stability while meeting international payment obligations.