The State Bank of Pakistan (SBP) conducted foreign exchange interventions worth $7.2 billion between June 2024 and April 2025 to stabilize the economy. These efforts helped increase Pakistan’s foreign exchange reserves by $885 million, while the remaining amount was mostly used for debt repayments, according to Arif Habib Limited (AHL).
SBP’s monthly interventions varied, with the largest purchase of $1.15 billion recorded in November 2024. Other significant interventions included $946 million in September, $722 million in July, and $860 million in March 2025. However, the volume gradually decreased in the following months.
Despite these interventions, the foreign exchange reserves showed mixed movement. In June 2024, reserves rose by $280 million, followed by a drop of $169 million in July. A sharp increase of $1.3 billion occurred in September, but this trend didn’t continue.
Reserves continued rising in October and November, reaching a peak of $12.03 billion. However, from December onward, reserves began to decline, dropping by $306 million in December and further reducing in January and February 2025.
March and April saw notable declines, with reserves falling by $611 million and $364 million respectively, bringing the total down to $10.28 billion. These shifts reflect the ongoing pressure on the external account despite the central bank’s consistent efforts.
Overall, SBP’s interventions helped manage volatility in the foreign exchange market and ensured timely debt repayments. However, sustaining reserve levels will likely depend on future inflows, economic reforms, and external funding support.