SBP Foreign Exchange Reserves Decline by $2.65 Billion in One Week

The SBP foreign exchange reserves witnessed a sharp decline of $2.65 billion in a single week, dropping to $9.06 billion as of June 20, 2025, mainly due to external debt repayments, the State Bank of Pakistan reported.

According to the latest figures released by the State Bank of Pakistan (SBP), the SBP foreign exchange reserves dropped to $9.06 billion on June 20, compared to $11.72 billion just a week earlier on June 13. The central bank attributed this steep decline to the Government of Pakistan’s (GoP) external debt repayments, particularly commercial borrowing.

Meanwhile, the country’s total liquid foreign reserves, which include net holdings by commercial banks, stood at $14.4 billion, marking an overall drop of $2.6 billion during the week.

Interestingly, the net foreign reserves held by banks other than the SBP recorded a weekly increase of $50 million, bringing the total to $5.333 billion.

Despite the current decline, the SBP noted that it has received commercial loan inflows worth $3.1 billion from the government along with more than $500 million from multilateral sources during the ongoing week.

These inflows are not yet reflected in the current data but will appear in the SBP foreign exchange reserves update for the week ending June 27, 2025.

The development comes as Pakistan continues to manage its external financing needs amid a delicate balance of repayments and inflows, with foreign reserves playing a crucial role in maintaining macroeconomic stability.