SBP forex reserves rise by $30m to $11.73bn

KARACHI: Pakistan’s foreign exchange reserves held by the central bank increased by $30 million to $11.725 billion in the week ending January 10, the State Bank of Pakistan (SBP) said on Thursday.

The country’s forex reserves rose by $73 million to $16.451 billion and the reserves of commercial banks also increased by $43 million to $4.726 billion. The SBP’s reserves are enough to cover over two months of imports.

The current account surplus helped by robust workers’ remittances, improvement in foreign investment inflows and the SBP’s dollar purchases from the local market all contributed to the buildup of its reserves. Pakistan recorded a current account surplus of $944 million in the five months of the fiscal year 2025, compared with a deficit of $1.67 billion during the same period last year.

Remittances from Pakistanis working abroad rose to $17.8 billion in the six months of the current fiscal year, compared with $13.4 billion during the same period last year, marking a 33 percent increase.

Recently, the World Bank pledged to provide $20 billion to Pakistan through a 10-year country partnership framework aimed at supporting inclusive and sustainable development in the country.

Pakistan’s Finance Minister Muhammad Aurangzeb stated that the government plans to issue yuan-denominated bonds to raise $200 to $250 million from Chinese investors by the end of this fiscal year to shore up the country’s finances. The government remains optimistic about meeting the bailout loan conditions set by the International Monetary Fund (IMF). The IMF’s mission is scheduled to visit Pakistan next month. The country secured a $7 billion, 37-month bailout from the IMF last year.

Recently, the country’s sovereign rating has been upgraded by all three major credit agencies. Aurangzeb expressed hope for further upgrades, to reach the “single-B” rating category, which would allow the country to return to global bond markets to raise funds.