Pakistan has reported a significant improvement in its foreign exchange position as the State Bank of Pakistan (SBP) announced that its reserves closed at $14.51 billion as of June 30, 2025. This marks an increase of $5.12 billion over the fiscal year 2024-25, reflecting a notable strengthening of the country’s external account.
According to the provisional data released, the SBP’s forex reserves stood at $9.39 billion on June 30, 2024. Over the course of FY25, these reserves recorded a healthy growth of approximately 54 percent, taking the stock to $14.51 billion by the end of June 2025. This surge is primarily attributed to an improved current account balance coupled with the successful realization of planned inflows that had been targeted by economic managers during the year.
The positive shift in reserves indicates a relatively stable external financing environment for Pakistan. Analysts highlight that the country benefited from a series of policy adjustments aimed at narrowing the current account deficit, alongside administrative steps to encourage formal remittances and maintain a steady flow of export proceeds. The higher reserve levels also underscore the impact of foreign financial support that Pakistan managed to secure over the past twelve months, ranging from multilateral loans to bilateral arrangements with friendly countries.
Economists view this development as a crucial buffer for the economy, especially given the global uncertainties and persistent inflationary trends that continue to pose risks for emerging markets. The buildup of reserves offers the State Bank greater flexibility in managing the rupee’s stability against major currencies, potentially cushioning any sudden external shocks. It also strengthens the country’s ability to meet debt repayments, ensuring that Pakistan can maintain confidence among international investors and creditors.
This year’s improvement follows a relatively challenging period when foreign exchange reserves were under consistent pressure due to high global commodity prices and repayments on external debt. The turnaround suggests that fiscal consolidation and tighter monetary policies adopted in recent quarters are yielding desired outcomes. Additionally, with Pakistan’s current account swinging closer to balance in several months of FY25, the need for external borrowing to bridge gaps has moderately eased.
The State Bank is expected to continue its prudent management of the reserves portfolio to safeguard the economy from external vulnerabilities. Market watchers will keep a close eye on how these reserves trend in the coming months, particularly as Pakistan gears up for further structural reforms under its economic roadmap.
Overall, the jump in forex reserves by $5.12 billion not only marks a positive headline for FY25 but also sets a more stable foundation for the country’s economic planning going into FY26. The increased reserve cushion will likely play a pivotal role in supporting exchange rate management, sustaining investor sentiment, and maintaining the financial ecosystem’s resilience.