Pakistan’s Foreign Exchange Reserves Rise Above $26.5 Billion to Highest Level

KARACHI: Pakistan’s total foreign exchange reserves have risen to more than $26.5 billion, reaching their highest level in recent years, according to the State Bank of Pakistan (SBP).

The reserves held by the State Bank of Pakistan have also crossed the $21 billion mark.

According to the State Bank, a major reason behind the increase was the receipt of around $3 billion from the sale of Eurobonds.

The central bank also said purchases of US dollars from the open market contributed to the increase in its foreign exchange reserves.

After including the reserves held by commercial banks, Pakistan’s total foreign exchange reserves reached around $26.5 billion.

Economic analysts said the increase means Pakistan now has sufficient foreign exchange reserves to cover more than three months of imports, marking a significant improvement after several years of pressure on the country’s external account.

The improvement in reserve levels provides greater capacity to meet international payment obligations and support the country’s import requirements.

Economists said stronger foreign exchange reserves could also provide greater stability to the Pakistani rupee and improve confidence in the country’s external economic position.

Higher reserves can help strengthen the central bank’s ability to manage external payment pressures and reduce vulnerabilities arising from sudden changes in international financial conditions.

After remaining under pressure for an extended period, Pakistan’s foreign exchange position has improved significantly, with reserves now providing a larger cushion against external economic shocks.