KARACHI: The State Bank of Pakistan (SBP) announced that the country’s foreign exchange (forex) reserves rose by $173 million during the week ending April 4, 2025.
This increase reflects growing economic stability ahead of Eid and the expected financial inflows from international partners.
According to official data released by the SBP, Pakistan’s total forex reserves reached $15.753 billion, up from $15.58 billion recorded the previous week on March 28, 2025. This weekly gain underscores the strengthening of the country’s external account position and provides some relief amidst global financial uncertainty.
A significant portion of the increase came from commercial banks, which contributed $150 million to the overall reserves. Their total holdings rose to $5.054 billion, up from $4.904 billion a week earlier. Analysts attribute this rise in commercial bank reserves to higher remittance inflows, spurred by seasonal factors such as Ramadan and the upcoming Eid festival. Additionally, modest improvements in exports helped boost foreign currency inflows.
The SBP’s own reserves also posted a positive change, increasing by $23 million to reach $10.699 billion, compared to $10.676 billion the previous week. This growth, though smaller, signals continued stability in the central bank’s capacity to support external payments and intervene when necessary to manage currency volatility.
Looking ahead, Pakistan is anticipating a further boost to its reserves through expected disbursements from the International Monetary Fund (IMF). The country recently concluded successful staff-level negotiations under the Extended Fund Facility (EFF), which may soon translate into significant inflows to the SBP’s account.
Economists note that a strong and sustained rise in forex reserves is vital for maintaining investor confidence, stabilizing the exchange rate, and ensuring timely debt servicing. The latest increase, led by remittances and potential IMF inflows, offers a positive outlook, but they emphasize the need for consistent policy reforms and export growth to maintain this momentum.
