Pakistan’s foreign exchange reserves have reached a record high, with the country’s total dollar reserves crossing $26 billion for the first time.
The State Bank of Pakistan’s reserves have also risen above $21 billion, marking a major improvement in the country’s external position and restoring more than three months of import cover after a gap of five years.
According to the State Bank, Pakistan’s total foreign exchange reserves have reached $26.5 billion, including dollar holdings held by commercial banks.
The new record was reached after Pakistan raised $3 billion through the sale of Eurobonds and purchased additional dollars from the market.
The SBP said the Eurobond proceeds, along with the market purchases, helped push the country’s foreign exchange reserves to a 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 foreign exchange reserve milestone shows a major recovery from the crisis levels seen in 2023.
At that time, the State Bank of Pakistan’s reserves had fallen to just $3 billion, putting significant pressure on the country’s ability to meet external payment obligations and finance imports.
Over the past three years, the SBP has increased its reserves from around $3 billion to more than $21 billion.
The rise 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 U.S. dollar in the near future, supported by improved foreign exchange availability and stronger reserves.
The record reserves, along 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.
