Pakistan’s foreign exchange reserves have experienced a significant turnaround, reaching $19.87 billion, following improvements in inflows and growing political stability. This marks a recovery from just two years ago, when the country struggled to cover its import and export payments.
According to the State Bank of Pakistan (SBP), the central bank’s reserves grew by $5.12 billion, or 54.5%, year-on-year, reaching $14.51 billion by the end of June 2025, up from $9.39 billion a year earlier.Â
The SBP attributed this rise to inflows including $3.1 billion in commercial loans and over $500 million from multilateral institutions, which were realised in the final week of June.
SBP reserves alone rose by $3.66 billion during the week ending June 27, 2025, reaching $12.73 billion from $9.06 billion the previous week.Â
Total liquid reserves now stand at $19.87 billion, with commercial banks holding $5.36 billion. This increase follows a $2.66 billion decline the week before, primarily due to external debt repayments.
The rise in reserves is expected to strengthen the Pakistani rupee and improve import cover, which will also bolster Pakistan’s position in upcoming talks with international lenders.
Meanwhile, the Pakistani rupee gained slightly against the US dollar in the interbank market, closing at 283.86 on Thursday, appreciating by 0.03% from the previous day’s rate.Â
