The State Bank of Pakistan (SBP) reported a sharp decline in the country’s foreign exchange reserves, which fell by more than $2.5 billion in just one week, according to data released on Thursday.

As of June 20, the SBP’s foreign currency reserves stood at$9.06 billion, down from $11.72 billion recorded on June 13, a drop of $2.65 billion. The central bank attributed this significant decrease primarily to external debt repayments by the Government of Pakistan (GoP), particularly the repayment of commercial borrowings.

Meanwhile, the country’s total liquid foreign exchange reserves, which include net reserves held by commercial banks alongside the SBP’s holdings, declined by $2.6 billion to $14.4 billion. Notably, net reserves held by banks increased slightly by $50 million, reaching $5.333 billion.

Looking ahead, the SBP announced that it has received commercial loans amounting to $3.1 billion and multilateral loans exceeding $500 million during the current week. These inflows are expected to bolster the central bank’s foreign exchange reserves in the week ending June 27, 2025.