SBP forex reserves at $10.61bn after $540m debt payment

Country's liquid foreign exchange reserves slipped to $15.55 billion as of March 21, 2025, — a notable decline in the central bank’s assets due to external debt repayments —, the State Bank of Pakistan (SBP) announced on Thursday.

The reserves managed by the SBP fell by $540 million during the week, settling at $10.61 billion — attributable to the servicing of foreign obligations.

Meanwhile, commercial banks' net foreign reserves were reported at $4.94 billion.

Despite the dip, SBP’s reserves remain above the crucial $10 billion mark, providing an import cover of over two months.

Analysts say that upcoming inflows, including expected multilateral and bilateral financing, could help stabilise the reserves in the coming weeks.

International Monetary Fund (IMF) staff reached a deal with Pakistan for a new $1.3 billion arrangement and also agreed on the first review of the ongoing 37-month bailout programme, the Fund said on Tuesday.

Pending board approval, Pakistan can unlock the $1.3 billion under a new climate resilience loan programme spanning 28 months.

It will also free $1 billion for the South Asian nation under its $7 billion bailout programme, which would bring those disbursements to $2 billion.

The programme, secured mid-year in 2024, has played a key role in stabilizing Pakistan's economy, and the government has said the country is on course for a long-term recovery.

"Over the past 18 months, Pakistan has made significant progress in restoring macroeconomic stability and rebuilding confidence despite a challenging global environment," the IMF said in a statement.

"Upon approval (by the IMF board), Pakistan will have access to about $1 billion under the EFF, bringing total disbursements under the programme to about $2 billion," the IMF said.

The Ministry of Finance says the country's $350 billion economy has stabilised under a $7 billion IMF bailout that had helped it stave off a default threat.

Pakistan continues to navigate external financing challenges, with policymakers focused on securing foreign inflows to maintain reserve buffers and support economic stability.