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Pakistan is on track to achieve a historic milestone as foreign exchange reserves held by the State Bank of Pakistan (SBP) are projected to exceed $20.2 billion by December 2026. According to Topline Securities, this unprecedented level of reserves would be sufficient to cover three months of imports, signaling improved economic stability for the country.
The forecasted growth comes amid expectations that the current account deficit will remain low, within 0-1 percent of GDP. Imports are projected to grow by 8 percent in FY26, while exports may see a slight decline of 6 percent during the same period.
“The projected reserves do not include potential inflows from Panda bonds or Eurobonds, which could further strengthen Pakistan’s foreign currency position,” said Topline Securities.
Pakistan’s forex reserves have seen fluctuations in recent years due to global economic pressures and domestic challenges. The consistent buildup of reserves reflects the government’s efforts to stabilize the currency, enhance investor confidence, and maintain economic resilience. With reserves at this historic level, Pakistan would be better positioned to manage import payments, reduce external vulnerabilities, and attract foreign investment.
Experts note that the increase in reserves comes as part of broader macroeconomic reforms. Measures such as improved export incentives, import management, and foreign inflows through loans or bonds have contributed to this positive trajectory. Analysts say maintaining a reserve level above $20 billion could help stabilize the Pakistani Rupee and support growth in key sectors.
