SBP buys $5.7bn from interbank market to boost forex reserves

KARACHI: The State Bank of Pakistan (SBP) purchased $5.677 billion from the interbank market between June 2024 and January 2025 to strengthen its foreign exchange reserves and meet external debt obligations, according to the central bank’s latest data.

In January alone, the SBP bought $154 million in foreign currency, down from $536 million in December.

Pakistan recorded a current account surplus of $1.2 billion in March, driven by a rise in remittances. The current account posted a cumulative surplus of $1.9 billion during the first nine months of FY2025, compared with a deficit of $1.7 billion in the same period last fiscal year.

The SBP estimates total external debt repayments for FY2025 at $26 billion, with $16 billion expected to be rolled over or refinanced. The remaining net repayable amount stands at $10 billion, of which $8 billion has already been paid.

During recent meetings with global financial and investment institutions at the IMF-World Bank Spring Meetings in Washington, SBP Governor Jameel Ahmad said the central bank had built foreign exchange buffers through market purchases, supported by a surplus in the external account.