Pakistan’s foreign exchange reserves pass $21.5bn, central bank chief says

Pakistan’s foreign exchange reserves have climbed to more than $21.5 billion, State Bank of Pakistan (SBP) Governor Jameel Ahmad said on Friday, in a sharp turnaround from the under-$3 billion level they hit in February 2023.

Speaking at the Lahore Chamber of Commerce and Industry, the governor said the reserves can now pay for more than three months of imports. In February 2023, they covered barely 15 days. He added that the economy grew by an average of 4.2 per cent during the first three quarters of the 2025-26 financial year.

Fresh central bank data released on Thursday backed up the picture. SBP-held reserves rose by $33 million to $21.52 billion in the week ended 23 October, the second weekly rise in a row. Total liquid reserves, including banks’ holdings, stood at $26.75 billion, with commercial banks holding $5.23 billion.

Why it matters

Foreign exchange reserves are the money a country uses to pay for imports and repay foreign loans. When they fell below $3 billion in early 2023, Pakistan was weeks away from running out of dollars to pay its bills. A cushion of more than three months of imports gives the country breathing room against shocks such as higher oil prices or a fall in exports.

The governor said the build-up came mainly from the central bank buying dollars in the market, rather than from new borrowing. External debt has risen by only $5-6 billion over the past four years, he said.

What happens next

The State Bank aims to lift its reserves to $23 billion by the end of December 2026 and $25 billion by June 2027. It has raised its forecast for workers’ remittances — money sent home by Pakistanis abroad — to $45 billion for the current financial year, up from $44 billion. The central bank expects the current account deficit to stay within 0 to 1 per cent of GDP, which would help reserves keep rising.

Sources

• https://www.thenews.pk/print/1446072-foreign-exchange-reserves-surge-to-21-5bn-sbp-governor
• https://www.thenews.pk/print/1445750-sbp-forex-reserves-rise-by-33m-to-21-52bn-as-of-october-23
• https://theazb.com/pakistans-foreign-reserves-rise-by-33-million-to-21-52-billion/
• https://mettisglobal.news/SBP-sees-forex-reserves-at-25bn-by-June-2027-64519

This article is for general information and education only. It is not legal or financial advice.