Pakistan foreign reserves stabilise despite heavy payments

Pakistan’s foreign exchange reserves have stabilised despite recent heavy external payments, according to official data.

The improvement comes as the country expects to receive $1.21 billion from the International Monetary Fund (IMF) within a few days, which is likely to further strengthen the reserves position.

According to documents from the State Bank of Pakistan (SBP), the country’s total foreign exchange reserves increased significantly over the past year. The overall reserves recorded an increase of $6.5096 billion during the last 12 months.

The central bank’s reserves rose by $5.5529 billion during the same period, while commercial banks also contributed to the overall improvement with an increase of $956.7 million in their foreign holdings.

LHC, government resolve Nikahnama reform dispute through consultation

Officials say the stability in reserves reflects improved external inflows and better balance in external accounts, even though Pakistan continues to face pressure from debt repayments and import-related expenditures.

The expected IMF tranche is part of ongoing programme arrangements aimed at supporting macroeconomic stability and structural reforms in the country. Once received, the funds are anticipated to provide additional cushion to Pakistan’s external financing position.

Economists note that maintaining adequate foreign exchange reserves is crucial for stabilising the local currency, ensuring import payments, and meeting international obligations. Recent trends suggest gradual improvement, although vulnerabilities remain due to global financial conditions and domestic economic challenges.

The State Bank has continued to monitor external inflows and outflows closely, with policymakers focusing on sustaining reserve levels through improved exports, remittances, and multilateral financing support.

Despite periodic pressures from external debt repayments, the overall trajectory of reserves has shown resilience over the past year, supported by international funding arrangements and inflows from financial institutions.