https://arab.news/jjmgf
- Reserves include $14.24 billion with central bank and $5.25 billion with commercial banks
- Pakistan’s reserves fell to critically low levels in mid-2023, triggering fears of a sovereign default
KARACHI: Pakistan’s foreign exchange holdings rose by $11 million this week, taking the State Bank of Pakistan’s (SBP) reserves to $14.24 billion and lifting the country’s total liquid reserves to $19.50 billion as of Aug. 8, the central bank said on Friday.
The increase comes just over two years after Pakistan’s reserves fell to critically low levels in mid-2023, dropping below $4 billion, barely enough to cover a few weeks of imports, and triggering fears of a sovereign default.
Since then, Islamabad has secured two International Monetary Fund (IMF) loan packages, implemented structural reforms recommended by the lender and pursued active economic diplomacy to attract foreign investment.
The government has also sought to move toward export-led growth and worked to increase workers’ remittances through formal banking channels.
“The total liquid foreign reserves held by the country stood at $ 19,496.7 million as of 08-Aug-2025,” the central bank said in an official statement.
The statement informed the SBP-held reserves stood at $14,243.2 million, while net foreign reserves held by commercial banks amounted to $5,253.5 million.
“During the week ended on 08-Aug-2025, SBP reserves increased by $ 11 million to $ 14,243.2 million,” the statement added.
It did not specify the reason for the rise, though officials have previously said the improvement reflects stronger reserve quality driven by earnings and inflows, rather than fresh borrowing.