Pakistan Foreign Reserves See $2.65 Billion Hike This Fiscal Year

Pakistan has experienced a significant rise in its foreign exchange reserves during the current fiscal year, indicating greater economic stability and improved financial governance. According to the latest figures released by the State Bank of Pakistan (SBP), the country’s total reserves have grown by $2.652 billion since the start of the fiscal year.

At the end of the last fiscal year, Pakistan’s total foreign exchange reserves were recorded at $13.997 billion, with the SBP holding $9.390 billion and commercial banks accounting for $4.607 billion.

By the week ending May 16, 2025, total reserves had increased to $16.649 billion. Of this, the SBP’s share had risen to $11.447 billion — a gain of $2.057 billion — while commercial bank reserves grew to $5.202 billion, an increase of $595 million.

This increase is seen as a positive sign for the economy, enhancing the country’s capacity to meet external financial commitments, support the national currency, and boost investor confidence. Economists note that higher reserves offer the government more flexibility in managing imports and curbing inflation.

The rise in reserves is believed to result from multiple factors, including financial inflows from international institutions, stronger export performance, higher remittances from overseas Pakistanis, and improved fiscal policies.

Despite ongoing global economic challenges, this upward trend in reserves is viewed as a timely and encouraging development for sustaining macroeconomic stability in the near future.

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