Pakistan’s liquid foreign reserves declined to $16.41 billion as of December 27, 2024, driven by a $143 million drop in State Bank of Pakistan (SBP) holdings due to external debt repayments, according to official data released on January 2.
The reserves comprise $11.71 billion held by the SBP and $4.7 billion held by commercial banks.
This marks a decline from $16.55 billion recorded in mid-December, reflecting external repayment pressures on the country’s foreign exchange position.
Despite the recent decline, the current reserves show significant recovery compared to $9.16 billion at the close of fiscal year 2022-23.
The increase in reserves over the past six months has been attributed to multilateral support, improved remittances, and other financial inflows.
The SBP’s reserves remain under strain, with external debt obligations continuing to challenge Pakistan’s ability to maintain a robust reserve position.
The $143 million weekly drop underscores the urgency of securing sustainable financing and enhancing foreign currency inflows through exports and remittances.
As Pakistan aims to stabilize its economy and navigate the challenges of international commitments, improving the reserve position will remain a key focus for policymakers.
