- The country’s foreign exchange assets also include gold reserves of $5.5 billion.
- Commercial bank liquid reserves of $4.7 billion are not included.
- Increase in foreign exchange reserves due to strict import restrictions: expert.
KARACHI: Pakistan’s total foreign exchange assets touched a three-year high of $18.7 billion in November 2024, providing critical support to the country’s external account, News reported Sunday.
According to Topline Securities, the country’s total foreign exchange assets, including liquid reserves and gold, stood at a three-year high of $18.7 billion, which also includes gold reserves of $5. $5 billion – a near record high thanks to rising gold prices.
In addition to this, $4.7 billion of liquid reserves are held with commercial banks and are not part of total foreign exchange assets, the statement added.
Saad Hanif, head of research at Ismail Iqbal Securities, said the upward trend in the country’s reserves reflected the impact of strict import restrictions, delays in dividend repatriation and successful debt refinancing with multilateral and bilateral partners, who have collectively eased the pressure on foreign exchange outflows.
He believes that the steady increase in gold reserves indicates a diversification strategy aimed at strengthening external accounts. Gold has hit several all-time highs this year, and Goldman Sachs predicts prices could reach $3,000 per troy ounce by the end of 2025.
“Even though these measures have brought temporary stability, sustainable growth of reserves will require structural reforms, including improving exports, attracting foreign investment and improving the efficiency of the energy sector,” Hanif said .
“Administrative controls must ultimately give way to policy-driven economic stability for long-term resilience,” he added. Pakistan recorded a current account surplus of $944 million in the five months of fiscal 2025, compared to a deficit of $1.67 billion in the same period last year. As of January 3, the State Bank of Pakistan’s (SBP) foreign reserves stood at $11.7 billion, enough to cover more than two months of imports.
Pakistan is seeking a $1 billion loan tranche from the International Monetary Fund (IMF) under the $7 billion Expanded Financing Facility (EFF) programme. Meanwhile, the next IMF review is scheduled for this quarter.
This week, Prime Minister Shehbaz Sharif announced that the United Arab Emirates (UAE) had agreed to roll over a $2 billion debt maturing this month.
According to the SBP, out of a total of $26.1 billion in external payments, $10.4 billion has already been paid or rolled over. The remaining debt repayment for the fiscal year, excluding planned refinancing, amounts to $5 billion.