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SBP Invests $7.76 Billion to Bolster Pakistan’s Reserves

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Released on, Aug. 26 – August 26, 2025 at 4:07 PM

The Central Bank of Pakistan (CBP) has acquired $7.76 billion from the forex market starting from June 2024 in an effort to enhance the nation’s foreign currency reserves and maintain stability in the exchange rate.

In May 2025, SBP raised $522 million through the interbank market, resulting in cumulative actions during the last 12 months—from June 2024 to May 2025—reaching $7.76 billion, including an amount of $473 million for April.

Pakistan’s foreign exchange reserves rose from $9.4 billion in June 2024 to $11.5 billion in May 2025, even with variations due to external debt payments and capital flows, aided by support from international organizations in September, November 2024, and May 2025.

The SBP kept intervening in the foreign exchange market, at times surpassing $1 billion, to keep reserves over $10 billion, offering a buffer against currency fluctuations and facilitating more stable market functioning.

The economic outlook for Pakistan has strengthened, featuring a trade balance surplus of $2.1 billion during the financial year 2025, supported by assistance from the IMF, robust worker contributions, decreased price increases, lowered borrowing costs, and a more consistent exchange rate.

In the initial month of the 2025-26 financial period, Pakistan reported a current account shortfall of $254 million, down from $348 million during the same time last year. The State Bank of Pakistan anticipates foreign exchange reserves to climb to $15.5 billion by December 2025 and approximately $17 billion by June 2026.

The central bank estimates external debt payments for fiscal year 2026 at $25.9 billion, comprising $22 billion in principal and $4 billion in interest, of which $16 billion will be refinanced, resulting in $10 billion available for payment.

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