Pakistan Surpasses IMF Target as SBP Reserves Reach $14.5 Billion

KARACHI: The State Bank of Pakistan (SBP) ended FY25 with foreign exchange reserves of $14.51 billion — exceeding the $13.9 billion target set by the International Monetary Fund (IMF), according to official data reported Thursday. The figure marks a $5.12 billion increase from the $9.39 billion recorded a year earlier, reflecting a notable improvement in Pakistan’s external account stability.

The rise in reserves is attributed to better current account performance and the realization of external inflows, including $3.1 billion in commercial loans and over $500 million in multilateral funding. Additionally, media reports indicate that China played a key role by rolling over $3.4 billion in loans, including a $1.3 billion commercial facility and $2.1 billion previously held at the SBP. This support came just days after reserves saw a sharp $2.66 billion drop due to debt repayments.

Analysts see the improvement as a major confidence boost for the economy. With current reserves, Pakistan now has enough to cover 2.5 months of imports, meeting a key IMF condition. Experts predict reserves could exceed $17 billion by mid-2026, supported by rising remittances, reduced interest payments, and better fiscal management. The SBP’s dollar purchases from the interbank market, totaling $6.8 billion between June 2024 and March 2025, also suggest improved liquidity in the forex market.