The State Bank of Pakistan (SBP) has purchased $7.76 billion from the foreign exchange market since June 2024 to boost the country’s foreign reserves and stabilize the exchange rate.
In May 2025, SBP acquired $522 million from the interbank market, bringing total interventions over the past 12 months, from June 2024 to May 2025, to $7.76 billion, with April interventions at $473 million.
Pakistan’s reserves increased from $9.4 billion in June 2024 to $11.5 billion in May 2025, despite fluctuations caused by external repayments and inflows, supported by multilateral assistance in September, November 2024, and May 2025.
The SBP continued interventions in the forex market, sometimes exceeding $1 billion, to maintain reserves above $10 billion, providing a safety cushion against exchange rate volatility and ensuring smoother market operations.
Pakistan’s macroeconomic position has improved, with a current account surplus of $2.1 billion for fiscal year 2025, aided by IMF support, strong remittances, lower inflation, reduced interest rates, and a relatively stable currency.
For the first month of the 2025-26 fiscal year, Pakistan recorded a current account deficit of $254 million, compared to $348 million last year. SBP expects reserves to reach $15.5 billion by December 2025 and about $17 billion by June 2026.
The central bank projects external debt repayments for FY26 at $25.9 billion, including $22 billion in principal and $4 billion in interest, with $16 billion expected to be rolled over, leaving $10 billion for repayment.