SBP forex reserves fall by $367m to $10.21bn due to debt payments

KARACHI: Pakistan’s central bank’s foreign exchange reserves dropped by $367 million to $10.21 billion in week ended April 18 on the back of external debt repayments, the State Bank of Pakistan (SBP) said in a statement on Thursday.

The total liquid foreign reserves held by the country decreased by $226 million to $15.436 billion. However, the reserves of commercial banks increased by $141 million to $5.23 billion.

“Reserves declined due to external debt repayments and a sharply negative financial account balance amid weak financial inflows,” said Saad Hanif, head of research at Ismail Iqbal Securities.

The SBP’s reserves are enough to cover two months of imports. Pakistan posted a $1.2 billion record high current account surplus in March due to surging remittances. However, the country experienced a $97 million current account deficit in the previous month. For the first nine months of the fiscal year 2025, Pakistan recorded a current account surplus of $1.9 billion, in contrast to a deficit of $1.7 billion during the same period last year.

The SBP expects forex reserves to reach over $14 billion in June. On the debt repayment front, the total amount payable for FY25 is $26 billion, of which $16 billion is expected to be rolled over or refinanced. Net repayable debt stands at $10 billion, with $8 billion already paid.