KARACHI: Pakistan’s foreign exchange reserves have reached an all-time high, with the country’s total dollar reserves crossing $26 billion for the first time in history.
The State Bank of Pakistan’s reserves have also surpassed $21 billion, marking a major improvement in the country’s external position and restoring import cover of more than three months after a gap of five years.
According to the State Bank, Pakistan’s total national foreign exchange reserves have reached $26.5 billion when dollar holdings maintained by commercial banks are included.
The latest record was achieved after Pakistan received $3 billion through the sale of Eurobonds, while additional dollars were purchased from the market.
The SBP said the combination of the Eurobond proceeds and market purchases helped push the country’s foreign exchange reserves to a new record level.
SBP reserves cross $21bn
The central bank’s own foreign exchange reserves have now exceeded $21 billion for the first time, marking a significant turnaround in Pakistan’s reserve position.
The latest level means Pakistan has once again accumulated enough dollar reserves to cover more than three months of imports, a milestone the country had not achieved for around five years.
The improvement provides greater breathing room for the country’s external financing position and strengthens its ability to meet import-related dollar requirements.
Reserves recover from $3bn in 2023
Pakistan’s latest reserve milestone represents a dramatic recovery from the crisis levels recorded in 2023.
At that time, the State Bank’s reserves had fallen to just $3 billion, putting considerable pressure on the country’s ability to meet external payment obligations and finance imports.
Over the past three years, the SBP has successfully increased its reserves from around $3 billion to more than $21 billion.
The buildup in foreign exchange reserves is also expected to support stability in the currency market.
Experts have predicted that the Pakistani rupee will remain stable against the US dollar in the near future, helped by the improved availability of foreign exchange and the stronger reserve position.
The record reserves, combined with the restoration of more than three months of import cover, mark a major shift from the severe dollar liquidity pressures Pakistan faced in 2023.
