Karachi – April 18, 2025: Pakistan’s foreign exchange reserves witnessed a decline of $127 million over the past week, according to the latest data released by the State Bank of Pakistan (SBP) on Thursday. The drop in reserves reflects the country’s ongoing struggle to maintain external sector stability amid debt repayments and global financial volatility.
As of April 11, 2025, the SBP’s foreign currency reserves stood at $10.57 billion, a decrease from $10.69 billion reported the previous week on April 4. The central bank did not specify the reasons behind the decline, but analysts point to scheduled external debt servicing, import-related payments, and reduced inflows as likely contributors.
The decline, though moderate in absolute terms, signals renewed pressure on Pakistan’s foreign account, particularly at a time when the country is pursuing key structural reforms and negotiating new external financing arrangements to ensure macroeconomic stability. The current level of reserves remains critical in managing the country’s import bill and maintaining exchange rate stability, especially as Pakistan prepares for upcoming repayments and seeks to avoid further drawdowns.
This weekly dip in reserves has slightly dented the cautious optimism that had built up in recent weeks following improved remittance inflows and a current account surplus reported for March. According to analysts, maintaining the current momentum will require consistent foreign inflows, disciplined fiscal management, and support from multilateral partners.
Financial experts have reiterated that despite the country’s recent progress in balancing external accounts, the reserve buffer remains vulnerable to global financial shocks, fluctuating oil prices, and policy uncertainty. “This drop serves as a reminder of the fragility of Pakistan’s foreign reserve position. While we’ve seen some positive indicators in the short term, the long-term outlook remains dependent on sustained reforms and external support,” said a Karachi-based economist.
Pakistan has recently launched its updated National Financial Inclusion Strategy (NFIS) 2024–28, aimed at improving access to financial services, especially for underserved segments, and integrating the informal economy into the formal banking sector. Enhanced financial inclusion and digitisation efforts are also expected to contribute indirectly to strengthening the external account by broadening the tax base and improving fiscal discipline.
In parallel, the government continues to engage with international financial institutions such as the International Monetary Fund (IMF), World Bank, and Asian Development Bank (ADB) for budgetary and balance-of-payments support. These discussions are key to ensuring that reserve buffers can be bolstered in the coming months.
As Pakistan moves deeper into FY25, the focus remains on managing inflation, maintaining exchange rate stability, and supporting sustainable growth — all of which are closely tied to the country’s foreign exchange reserve position.
With continued global economic uncertainty and domestic policy challenges, analysts are urging close monitoring of the country’s external financing requirements and careful prioritization of outflows to avoid excessive depletion of reserves in the months ahead.