Forex reserves in Pakistan hit $21.1 billion, strongest since 2022

Pakistan’s economy has reached a major milestone as foreign exchange reserves climbed to $21.1 billion, the highest since March 2022. This increase signals a shift toward stability after years of external pressure. Analysts say the surge reflects growing investor confidence and stronger economic fundamentals.

The State Bank of Pakistan’s reserves now stand at $15.9 billion, showing a sharp recovery from just $2.9 billion in 2023. Domestic reserves have increased nearly 5.5 times compared to last year, strengthening Pakistan’s import capacity to over 2.6 months. Previously, import cover had fallen to less than two weeks, raising concerns about external solvency.

Experts highlight that the rise in reserves is driven by sustainable domestic growth and renewed confidence, not temporary financial measures. Pakistan’s external debt-to-GDP ratio has fallen from 31% to 26%, reflecting better fiscal discipline and reform efforts. Forward foreign exchange liabilities have also been reduced by 65%, easing future repayment pressures.

This reversal of trends marks a significant turnaround compared to 2015–2022, when reserves declined and debt continued rising. Economists say the increase shows improved macroeconomic management and stronger external financial foundations. The country is now less vulnerable to external shocks and better positioned to manage future economic challenges.

Overall, the rise in foreign exchange reserves represents a qualitative shift in Pakistan’s economic strategy. Analysts stress that the country is moving away from debt-driven short-term fixes toward sustainable, long-term financial stability. Rising reserves, stronger business confidence, and improved fiscal management indicate a more resilient economic outlook for Pakistan.

Read more : FBR Orders Cameras Installed Across Pakistan’s Textile Mills

The Federal Board of Revenue has decided to closely monitor spinning and textile mills. It has directed mills to install surveillance cameras to improve oversight. Two private firms have been assigned the job of supplying and installing the camera systems. Their invoices have already been sent to mill owners, according to APTMA sources.

The new system will be introduced in phases. Each mill may receive up to 20 cameras once installation begins. However, APTMA sources argue that the required software and equipment are available in the market at almost half the quoted price. They believe the cost burden on mills is unnecessary and unfair.