ISLAMABAD: Pakistan’s liquid foreign exchange reserves have decreased by $540 million, reaching $15.55 billion as of March 21, 2025, primarily due to external debt servicing, according to a report from the State Bank of Pakistan (SBP) on Thursday.
The SBP’s reserves fell to $10.61 billion, while commercial banks’ net foreign reserves stood at $4.94 billion. Despite the drop, SBP reserves remain above the critical $10 billion threshold, enough to cover over two months of imports.
Analysts suggest that upcoming financial inflows, including expected multilateral and bilateral funding, could help stabilize the reserves in the near future.
The International Monetary Fund (IMF) has recently reached an agreement with Pakistan for a new $1.3 billion arrangement and a review of the current 37-month bailout program. Pending approval, this will unlock additional funding, including $1 billion for Pakistan under the ongoing $7 billion bailout program.
The IMF has praised Pakistan for its progress in restoring macroeconomic stability despite global challenges. Pakistan’s Ministry of Finance has stated that the country’s economy, valued at $350 billion, has stabilized under the IMF’s support, which has been crucial in averting a default crisis. However, Pakistan continues to face external financing hurdles as it seeks to maintain its reserve buffers and sustain economic stability.
