Pakistan Central Bank Reserves Drop $1.305bn to $15.916bn Due to External Debt Repayments; $2.4bn Inflows Due by June 30
KARACHI: The State Bank of Pakistan (SBP) expects the country’s foreign exchange reserves to strengthen by the end of June, projecting its reserves to reach around $18 billion by the close of FY2025-26, despite a recent decline caused by external debt repayments.
According to the latest weekly data, SBP-held foreign exchange reserves fell by $1.305 billion to $15.916 billion, down from $17.221 billion in the previous week. As of June 19, Pakistan’s total liquid foreign exchange reserves stood at $21.484 billion, while net reserves held by commercial banks amounted to $5.568 billion.
The central bank said the recent decline was primarily due to external debt repayments made during the period.
Looking ahead, the SBP expects $2.4 billion in inflows by June 30, including $700 million from multilateral institutions for the government and $1.7 billion through refinancing arrangements for commercial loans. These inflows are expected to improve the central bank’s reserve position significantly.
The SBP noted that foreign exchange reserves can fluctuate from week to week depending on payment schedules and incoming receipts. It added that maintaining adequate reserves remains important for supporting external sector stability, while the central bank continues to closely monitor reserve movements as part of its ongoing reserve management efforts.
The projected increase in reserves reflects the anticipated impact of the expected inflows and aligns with the central bank’s objective of strengthening Pakistan’s external position over the medium term.
