- SBP Forex reserves exceed the target of $ 13.9 billion indicated by the IMF.
- The figure reflects the improvement of the main ones of the current account balance.
- Reserves Sufficient to cover 2.5 months of imports: Expert.
Karachi: The reserves of the Pakistan State Bank (SBP) increased from $ 5.12 billion to $ 14.51 billion on June 30 at the end of the 2024-25 (FY5), The news reported Thursday.
The figure exceeds the target of $ 13.9 billion indicated by the International Monetary Fund (IMF).
The SBP reserves amounted to $ 9.39 billion on June 30 of last year and the increase reflects a significant improvement in the current account balance and the completion of the entries scheduled during the year, the SBP said in the press release.
The central bank did not provide reason for the significant increase in reserves of more than $ 5 billion during the fiscal year 2025. But according to the press release published last week, it received commercial loans of $ 3.10 billion and multilateral loans totaling more than $ 500 million.
SBP reserves had dropped $ 2.66 billion on June 20, the second largest weekly dropped down, due to reimbursements in external debt.
According to the media, China collected more than $ 3.4 billion in Pakistan loans over the weekend, helping to increase the country’s Forex reserves, which the IMF needs. Beijing refined a 1.3 billion dollars commercial loan that Islamabad had reimbursed two months earlier, and he also exceeded $ 2.1 billion which were in the SBP reserves for the previous three years.
“With this level of SBP reserves, the country has fulfilled the condition of the IMF set for central bank reserves greater than $ 13.9 billion set for June 30, 2025. This is the highest weekly increase,” said Awais Ashraf, research director at AKD Securities Limited.
SBP reserves are sufficient to cover 2.5 months of imports, said Ashraf.
“We expect reserves to exceed $ 17 billion by June 2026 due to funds and a reduction in interest payments,” he added.
Two years ago, Pakistan exchange reserves dropped to extremely low levels, offering less than a month of import coverage. The government has obtained a short -term bondage of IMF of $ 3 billion in response to the prospect of a defect in sovereign debt. In addition, the government has restricted imports and has enabled greater exchange rate flexibility.
The increase in Forex reserves reflects an improvement in the management of external accounts, higher funds, better exports and disciplined political actions under IMF directives, Mohammad Sohail, CEO of Topline Securities, wrote on X.
The SBP has strengthened its reserves by buying dollars on the market. Between June 2024 and March 2025, he bought $ 6.8 billion from the interbank market, indicating the availability of currencies in the system.