The foreign exchange reserves held by the State Bank of Pakistan (SBP) increased by $27.1 million or 0.24% week-on-week (WoW) to reach $11.25 billion as of February 28, 2025, according to data released by the central bank on Thursday.
However, despite the SBP’s gain, the country’s overall foreign reserves declined by $51.9 million or 0.33% WoW to $15.87 billion, primarily due to a significant drop in commercial bank reserves. The reserves held by commercial banks fell by $79 million or 1.68% WoW, bringing their total holdings down to $4.62 billion.
On a broader timeline, SBP-held reserves have risen by $1.86 billion or 19.81% since the start of the current fiscal year. However, on a calendar-year basis, the reserves have decreased by $461 million or 3.94%.
The fluctuations in reserves come amid ongoing external financing challenges, debt repayments, and import-related pressures. Analysts suggest that maintaining foreign exchange stability will depend on sustained inflows from exports, remittances, and external financing arrangements.
