Pakistan’s liquid foreign reserves have shown a significant upward trend, reaching US$ 16,648.5 million as of May 16, 2025.
This gradual increase is achieved through substantial inflow from the International Monetary Fund (IMF) under its Extended Fund Facility (EFF) program. Out of these foreign funds, State Bank of Pakistan (SBP) holds the majority, with US$ 11,446.5 million. While the remaining US$ 5,202.0 million is held by commercial banks.
A major contributor to this positive development was the receipt of the second tranche of SDR 760 million (equivalent to approximately US$ 1,023 million) from the IMF on May 13, 2025. This disbursement, part of the ongoing EFF program, led to an increase of US$ 1,043 million in SBP’s reserves during the week. This inflow reflects the successful completion of the first review under the EFF arrangement. This arrangement paved the way for an additional arrangement under the Resilience and Sustainability Facility (RSF) with access to approximately US$ 1.4 billion.
This recent surge in reserves builds upon previous improvements. For instance, in the week ended May 2, 2025, Pakistan’s total liquid foreign exchange reserves had already seen a boost of US$ 231 million, reaching US$ 15.483 billion. The SBP’s reserves had increased by US$ 118 million to US$ 10.332 billion, while commercial banks’ reserves rose by US$ 113 million to US$ 5.150 billion. Economists highlight that this upward trajectory in foreign reserves provides crucial breathing room for Pakistan’s external sector.
Despite some fluctuations in earlier periods, such as a decline in SBP-held reserves by US$ 367 million to a seven-month low in April 2025 due to external debt repayments. The overall trend since early 2023 has been one of significant recovery. Pakistan’s foreign exchange reserves have more than tripled since that time. This reflects a period of stabilization in Pakistan’s economy, supported by prudent monetary policies and sustained fiscal consolidation efforts.