Pakistan’s short-term foreign exchange liabilities have crossed the $31 billion mark, reflecting mounting pressures on the country’s external account, according to the latest liquidity report released by the State Bank of Pakistan (SBP). The report indicates that due to maturing foreign currency loans, securities, and deposits, Pakistan’s foreign currency assets are expected to experience a net outflow of $31.11bn over the near term.
The total projected outflow has been classified according to residual maturity, highlighting areas of immediate and medium-term concern. The most significant portion falls within the more than three months up to one-year maturity segment, which alone accounts for $22.11bn. This category represents the largest share of upcoming obligations and underscores the concentration of repayment pressures within the next twelve months.
In addition to this, outflows amounting to $4.39bn are due within the next one month, while a further $4.60bn is payable in the one-to-three-month maturity window. Together, these near-term obligations point to sustained pressure on foreign exchange liquidity, particularly in the context of limited reserve buffers and ongoing external financing needs.
A breakdown of the outflows shows that principal repayments form the bulk of the obligations, totaling $27.65bn. Of this amount, $19.55bn falls within the more than three months up to one-year maturity bracket. Interest payments further add to the burden, contributing an additional $3.45bn to total outflows. Notably, $2.56bn of these interest payments are also concentrated in the longest maturity segment identified in the report.
The liquidity report also sheds light on Pakistan’s position in foreign exchange derivatives. Aggregate short and long positions in forwards and futures reveal a net shortfall of $1.87bn. Short positions stand at $2.23bn, while long positions provide a partial offset of $361m. This imbalance indicates limited hedging coverage against external payment obligations, further amplifying near-term vulnerability.
These indicators collectively underline the strain on Pakistan’s external account and highlight the importance of continued foreign inflows, timely rollovers of existing liabilities, and disciplined management of external debt. Analysts note that maintaining reserve adequacy will remain challenging without sustained support from multilateral lenders, bilateral partners, and market-based financing avenues.
Despite these pressures, Pakistan’s official reserve assets stood at $26.32bn as of December 31, 2025, according to SBP data. While reserves provide a degree of cushioning, the scale of short-term obligations remains substantial when viewed against available buffers.
Foreign currency reserves held in convertible currencies constitute the most liquid portion of the reserve portfolio, amounting to $14.54bn. These reserves are critical for meeting immediate external payment needs and supporting exchange rate stability.
Gold holdings continue to play a stabilizing role in Pakistan’s reserve position. The SBP holds 2.082 million fine troy ounces of gold, valued at $9.10bn. These holdings serve as a strategic hedge against currency volatility and external shocks, enhancing overall reserve resilience.
Currency and deposits with various institutions account for $12.33bn of the total reserves. Of this amount, $7.95bn is placed with other national central banks, the Bank for International Settlements, and the International Monetary Fund. A further $4.37bn is deposited with banks headquartered outside the reporting country, while $13.58m is held with foreign branches of domestic banks.
Pakistan’s reserve position with the International Monetary Fund stands at $0.16m, while Special Drawing Rights contribute $235.58m to overall reserves. Beyond official reserve assets, the country also holds $133.26m in other foreign currency assets, including securities, deposits, loans, and financial derivatives not classified under official reserves.
The latest figures highlight the delicate balance facing policymakers as Pakistan navigates significant short-term foreign currency obligations alongside the need to preserve external stability and investor confidence.
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