Karachi, May 3, 2025 — The foreign exchange reserves held by the State Bank of Pakistan (SBP) saw a slight increase during the week ended April 25, rising by $9 million to reach a total of $10.214 billion. This marginal gain, though modest, is a positive signal for the country’s external account, which continues to navigate a challenging economic landscape.
According to official figures released on Thursday, the country’s overall liquid foreign exchange reserves stood at $15.251 billion. Out of this, commercial banks accounted for $5.037 billion, while the SBP held the remaining $10.214 billion. While the central bank did not cite specific reasons for the incremental rise, such weekly changes typically reflect routine inflows and payments, including remittances and external debt servicing.
This uptick in reserves comes at a critical juncture as Pakistan awaits the disbursement of the next tranche under its current International Monetary Fund (IMF) program. The IMF Executive Board is scheduled to meet on May 9 to approve the release of $1.1 billion, which would be the second tranche of the broader financial support package. The upcoming IMF review and the anticipated inflow are seen as pivotal for further stabilizing the country’s foreign exchange position and boosting investor confidence.
Despite prevailing geopolitical tensions and a “war-like” regional atmosphere, Pakistan’s exchange rate has remained notably stable. On April 30, the Pakistani Rupee depreciated slightly by nine paise, with the US Dollar closing at Rs281.06 compared to Rs280.97 in the previous session. The limited movement in the currency underscores a calm forex market, supported by relatively subdued demand pressures and improved foreign exchange management by the central bank.
Currency analysts suggest that the current calm in the forex market is largely due to better-than-expected remittance inflows, contained imports, and the anticipation of fresh funding from multilateral sources. Additionally, the Rupee’s stability is bolstered by improved macroeconomic indicators and cautious optimism surrounding fiscal discipline.
The improvement in SBP reserves, albeit minor, is significant given the backdrop of Pakistan’s ongoing efforts to build economic resilience and meet its external financing needs. The central bank has been under pressure to maintain adequate reserve buffers to ensure exchange rate stability and meet upcoming debt repayments without causing undue market disruption.
With Pakistan’s foreign exchange reserves still at a relatively thin level compared to historical highs, each increment matters in terms of external confidence and liquidity. Economists believe that timely and sustained inflows—such as the pending IMF tranche and other potential bilateral or multilateral support—will be essential for macroeconomic stability in the months ahead.
As the May 9 IMF review approaches, all eyes remain on policy continuity, reform momentum, and the ability of the country’s economic managers to navigate external vulnerabilities. A successful disbursement could provide much-needed breathing space to the SBP and create room for further foreign exchange reserve accumulation, ultimately helping Pakistan reinforce its path toward economic recovery and stability.