The State Bank of Pakistan (SBP) has successfully met the International Monetary Fund’s (IMF) Net International Reserves (NIR) target for December 2024, exceeding expectations, and is confident in achieving the June 2025 target as well.
SBP Governor Jameel Ahmed provided an economic outlook during an analysts’ briefing following the central bank’s monetary policy committee meeting on Monday. He detailed Pakistan’s foreign reserves position, debt repayment obligations, policy rate considerations, and external borrowing strategy.
Ahmed stated that approximately $3 billion in repayments—net of rollovers and refinanced amounts—are due by the end of the current fiscal year. He expressed optimism that planned inflows, secured over the past months, will materialise in the fourth quarter of FY25, with some linked to the successful completion of the ongoing IMF review.
He noted that both the government and the SBP have deliberately delayed external borrowing to negotiate better terms, with progress expected in the coming months. Addressing concerns over monetary policy, he emphasized that while inflation remains a key factor, external accounts, foreign reserves, and exchange rate stability also influence policy rate decisions.
Discussing external debt obligations for FY25, he disclosed that total repayments stand at $26 billion, including $21.9 billion in principal repayments and $4.1 billion in interest payments. Of this, $16.2 billion was earmarked for rollover or repayment, with $7 billion already settled and $3 billion due before June 2025.
Ahmed attributed the recent surge in open market operations (OMOs) to an increase in currency circulation, primarily due to seasonal demand during Ramadan and Eid, as well as higher government borrowing levels.
The governor also reiterated that the Rs3 million cap on car financing will remain in place under the current regulatory framework, though a review may be considered depending on economic conditions.
