SBP forex reserves rise by $35m to $11.2bn

KARACHI: Pakistan’s central bank foreign exchange reserves increased by $35 million to $11.20 billion during the week ended February 14, the State Bank of Pakistan (SBP) said in a statement on Thursday.

The total liquid foreign reserves held by the country rose by $85 million to $15.948 billion. The reserves of commercial banks also increased by $50 million to $4.746 billion. Although the SBP’s reserves saw a marginal improvement after three weeks of decline attributed to external debt repayments, the current account deficit, exacerbated by a wider trade gap, exerted pressure on reserves, particularly in the absence of foreign inflows.

Pakistan’s current account turned to a deficit of $420 million in January from a surplus of $474 million in the previous month. The fundamental cause of the current account deficit in January is the increase in the

trade and services imbalance, attributed to a rise in goods imports and a decline in services exports. The slowdown in other personal transfers during January has further exacerbated the situation.

However, the country reported a current account surplus of $682 million in the seven months of the fiscal year 2025, compared with a deficit of $1.8 billion in the same period last year. In January, remittance inflows from Pakistanis working abroad increased to $3 billion, marking a 25 per cent growth compared with a year ago, though they were down 3.0 per cent from the previous month.

According to data from the Economic Affairs Division, Pakistan secured $4.585 billion from various funding sources during the seven months (July-January) of the fiscal year 2025, in contrast to $6.31 billion borrowed in the corresponding period last year. The $4.585 billion excludes the first tranche of $1.03 billion received from the International Monetary Fund (IMF).