The State Bank of Pakistan’s foreign exchange intervention reached $6.9 billion in the one-year period from October 2024 to September 2025, following its latest dollar purchase from the interbank market.
The central bank purchased $1 billion from the interbank foreign exchange market in September 2025, marking an increase in its market intervention compared with August, when net purchases stood at $257 million.
Despite the dollar purchases, the SBP met its external payment obligations during the month, including repayment of a $500 million international bond in September 2025.
The central bank had earlier told analysts, following its Monetary Policy Committee meeting, that it increased foreign exchange purchases from September onwards due to improved balance-of-payments conditions and better liquidity in the interbank market.
As of December 19, 2025, Pakistan’s total liquid foreign exchange reserves stood at $21.023 billion. Of this, reserves held by the SBP amounted to $15.903 billion, while net foreign reserves with commercial banks stood at $5.120 billion.
The SBP’s reserves are projected to rise steadily to $17 billion by the end of June 2026, supported by expected official inflows, including disbursements under IMF programmes, potential international debt issuances such as Eurobonds, Panda Bonds and Sukuk, as well as rollovers of deposits and loans from Saudi Arabia, United Arab Emirates and China.Â
Pakistan’s current account balance is projected at 0–1% of GDP in FY26, with remittances expected to exceed $40 billion, easing pressure on the external account.
Total external debt servicing requirements for FY26 are estimated at $25.8 billion, comprising $21.4 billion in principal repayments and $4 billion in interest. Of this amount, $4.4 billion has already been repaid, while rollovers worth about $5.3 billion have been secured. From the remaining $15.3 billion, around $9.3 billion is expected to be rolled over.
