In a major economic breakthrough, the State Bank of Pakistan (SBP) has announced that its foreign exchange reserves surged by over $5 billion during the outgoing fiscal year, reaching $14.51 billion by June 30, 2025, comfortably surpassing the International Monetary Fund’s (IMF) target of $13.9 billion.
According to provisional data released on Wednesday, the SBP’s reserves rose from $9.39 billion at the end of FY24 to $14.51 billion by the close of FY25, marking a significant $5.12 billion increase. Economists hailed the development as a critical milestone in Pakistan’s path toward economic stabilization.
The strong buildup in reserves comes on the back of substantial foreign inflows, including $3.1 billion in commercial loans secured by the Government of Pakistan and over $500 million in multilateral funding received last week. These inflows significantly boosted the country’s external buffers, especially after a sharp decline recorded earlier in June due to debt repayments.
Governor SBP Jameel Ahmed had earlier projected that the central bank would meet or exceed the $14 billion mark by the end of FY25, even in the face of large external debt servicing obligations. That projection has now materialized.
Economists and financial analysts attributed the achievement to a combination of prudent macroeconomic policies, improved current account performance, strong remittance inflows, and disciplined fiscal management. They noted that the coordinated efforts of the SBP and the federal government played a crucial role in maintaining external stability.
“This is a major confidence booster for the market and a clear signal that Pakistan’s external account management is on the right track,” said Muhammad Sohail, CEO of Topline Securities. He added that the milestone reflects “stronger exports, rising remittances, and disciplined policy implementation under IMF guidance.”
The accomplishment is especially noteworthy given the sharp drop in SBP reserves recorded just weeks earlier. As of June 20, 2025, the central bank’s reserves had fallen by $2.657 billion to $9.064 billion, largely due to major external debt repayments, including commercial loan settlements. Despite this, the SBP managed to quickly recover the lost ground by mobilizing over $5 billion in fresh inflows within a week.
Analysts believe the improved reserve position will not only strengthen Pakistan’s negotiating position in future talks with international lenders but also provide much-needed breathing space for the rupee and the broader economy.
