KARACHI: Pakistan’s total liquid foreign exchange reserves rose by $1.034 billion during the last week, supported by the release of a loan tranche by the IMF.
According to the State Bank of Pakistan (SBP), with the arrival of IMF inflows, the country’s total liquid foreign exchange has crossed the $16 billion mark and surged to $16.649 billion as of May 16, 2025 compared to $15.614 billion as of May 9, 2024.
Previously, total liquid foreign exchange reserves touched the $16 billion mark in November 2024. During the week under review, SBP’s reserves increased by $1.043 billion to $11.447 billion, up from $10.403 billion a week earlier. The current level of SBP’s reserve is a 4-month high.
The SBP received the 2nd tranche of SDR 760 million ($1.023 billion) from the IMF under the EFF program on May 13, 2025, of which the reserves have been increased. However, net foreign reserves held by commercial banks declined by $9 million to $5.202 billion at the end of the week.
The IMF has also approved a Resilience and Sustainability Facility (RSF) program for Pakistan, granting access to approximately $1.4 billion (SDR 1 billion) to bolster the country’s resilience to climate shocks and promote sustainable growth. This program is part of a broader agreement that includes a 37-month Extended Fund Facility (EFF) program, which provides $7 billion in financial support for Pakistan’s economic recovery and stabilization.
In addition, the release of the IMF tranche will also unlock inflows from other donors and international institutions.
Jameel Ahmed, governor of SBP, has already projected that SBP’s foreign exchange reserves will continue to build in the coming months and cross the $14 billion mark by June 2025, supported by sufficient foreign inflows.
Copyright Business Recorder, 2025
