KARACHI: Pakistan’s foreign exchange (forex) reserves witnessed a notable increase of $277 million during the week ended June 6, 2025, according to data released by the State Bank of Pakistan (SBP) on Friday.
This marks another positive development for the country’s external account as it continues to strengthen its reserves position.
The SBP reported that total forex reserves rose to $16.875 billion, up from $16.598 billion recorded on May 30, 2025. The increase comes as a result of higher remittance inflows and improved export earnings, contributing to a more stable and resilient forex buffer.
Breaking down the numbers, the SBP’s own reserves rose by $167 million, reaching $11.676 billion by June 6, 2025, compared to $11.509 billion a week earlier. This increase in SBP-held reserves is particularly important, as it reflects the central bank’s ability to support the national currency and meet external debt obligations.
At the same time, forex reserves held by commercial banks also posted a gain of $110 million, climbing to $5.199 billion from $5.089 billion a week earlier. According to market observers, this uptick can largely be attributed to robust workers’ remittances and improved export-related receipts which were deposited in the banking system.
Experts believe that this consistent buildup in forex reserves provides greater breathing room to the SBP for future monetary and exchange rate policy decisions. A stronger reserves position reduces the risk of volatility in the currency markets and helps Pakistan meet its short-term external financing needs.
Furthermore, the SBP is expected to factor in the current reserves trajectory when announcing its upcoming monetary policy. A healthier reserves outlook may support the central bank’s confidence in managing inflation and supporting economic growth.
With Pakistan’s external account showing gradual improvement, the SBP’s ongoing efforts to maintain and grow forex reserves remain a critical pillar of macroeconomic stability. Sustained inflows through remittances, exports, and potential inflows from multilateral institutions will be vital in keeping the reserves momentum intact in the coming weeks.
