Pakistan’s foreign exchange reserves have reached a record $21.4 billion, surpassing the State Bank of Pakistan’s (SBP) $21 billion target for June 2027 nearly nine months ahead of schedule.
The increase was driven by proceeds from a $3 billion Eurobond issuance and continued foreign exchange purchases by the central bank through the interbank market.
The latest reserve level has also exceeded the previous peak of $20.1 billion recorded in August 2021. It is also above the SBP’s December 2026 target of $20.2 billion, which has been achieved a quarter ahead of schedule.
The SBP said the Eurobond issuance in September, combined with significant foreign exchange purchases, helped push its reserves to the latest record level.
The central bank’s reserves stood at $18.33 billion as of September 4, 2026, showing a substantial increase within a short period.
The SBP expects strong workers’ remittances and higher information and communication technology (ICT) exports to support Pakistan’s external position during FY27.
The central bank expects the current account deficit to remain within 0% to 1% of GDP during the fiscal year.
However, the SBP warned that the external sector remains exposed to elevated global commodity prices and supply-side disruptions amid continuing developments in the Middle East.
Pakistan is expected to face total external debt repayments of $21.5 billion during FY27, including principal and interest payments. After accounting for expected rollovers and refinancing, around $11 billion is expected to be net repayable.
SBP Governor Jameel Ahmad said the central bank has already repaid around $3.5 billion, leaving approximately $7.5 billion in net external debt repayments for the remainder of FY27.
The SBP also expects workers’ remittances to exceed its $44 billion FY27 target, following strong growth during the first two months of the fiscal year.
Governor Jameel Ahmad said a new incentive scheme to encourage overseas Pakistanis to send remittances through formal banking channels is expected to be launched early next month.
The scheme will be funded and administered by commercial banks without government fiscal support, making it fiscally neutral.
Meanwhile, the central bank expects Pakistan’s exports to reach slightly above $32 billion during FY27, which could provide additional support to the country’s external position.
The record reserve position gives Pakistan a stronger external buffer, although the SBP continues to monitor risks from global commodity prices, external debt repayments and geopolitical developments in the Middle East.
