The foreign exchange reserves of the state bank of Pakistan (SBP) jumped by 5.12 billion doubling up to 14.51 billion in June 30 as per the end of FY2024-25, exceeding the 13.9 billion goals by the International Monetary Fund (IMF).
The reserves of the SBP were at 9.39 billion dollars last year and the increase this year has been due to better balance of the current account and the actualization of inflows as claims by the SBP.
Though the central bank never spelt out the specific causes of the rise, previous reports had cited $3.1 billion worth of commercial loans and over $500 million worth of multilateral loans as factors.
As of June 20, reserves were down by 2.66 billion because of payments on external debt, the second-largest weekly decline. But a 3.4 billion loan rollover Chinese including $1.3 billion commercial loan and 2.1 billion reserves in SBP reserves helped in stemming back the decline.
According to Awais Ashraf, AKD Securities Research director, it is the maximum rise in a week and that the Pakistan has fulfilled the IMF criteria of the reserves exceeding 13.9 billion dollars. Awais Ashraf added that the present reserves would sustain 2.5 months of import.
He also forecasted a projected increase in reserves of over 17 billion dollars by June 2026, owing to improved remittances and reduced interests.
Reserves in Pakistan had sunk to less than a month’s cover of imports two years ago giving way to a $3 billion IMF bailout.
Ever since, the government has become stricter in import policies and embraced a more accommodative exchange rate.
Mohammad Sohail, the chief executive of Topline Securities, said the growth was due to improved management of external accounts, increased exports and controlled IMF-supported reforms.
There was also better availability of forex in the SBP, which purchased 6.8 billion in the interbank market between June 2024 and March 2025.
