The State Bank of Pakistan (SBP) purchased $6.8 billion from the interbank market to strengthen its foreign exchange reserves and manage foreign debt repayments between June 2024 and March 2025.
In March alone, the SBP bought $860 million. This intervention aligns with the country’s goal to reach a $14 billion foreign exchange reserves target by the end of fiscal year 2025, which concludes on June 30.
As of June 20, the SBP’s forex reserves stood at $9.06 billion, a decrease of $2.66 billion due to external debt repayments. However, the bank received $3.1 billion in commercial loans and over $500 million in multilateral loans, which are expected to be reflected in the SBP’s reserves by June 27.
These market-based purchases also align with Pakistan’s commitments under the International Monetary Fund (IMF) loan program, which supports reserve buildup through non-disruptive interventions when market conditions are favorable.
Recent reports revealed that China rolled over $3.4 billion in loans to Pakistan, contributing to the increase in the country’s forex reserves. This includes a $1.3 billion commercial loan refinancing and a $2.1 billion rollover from reserves held in the SBP for the last three years.Â
Additionally, Pakistan received $500 million in multilateral financing and $1 billion from Middle Eastern commercial banks.
