Pakistan’s Overall Foreign Reserves Cross $17 Billion

Pakistan’s total liquid foreign exchange reserves have surpassed the $17 billion mark, ending the week of June 13, 2025, at $17.005 billion. This uptick, driven by both central bank and commercial bank holdings, provides a welcome boost to the country’s ability to stabilize its currency, cover imports, and fulfill external debt obligations.

• Total reserves: $17.005  billion, up from $16.875 billion 

• SBP holdings: Increased by $46 million to $11.722 billion 

• Commercial banks: Net reserves climbed by $83 million, totaling $5.283 billion

• Improved import cover: Higher reserves reduce the risk of shortages in fuel, machinery, and food.

• Currency stability: Provides a buffer to smooth exchange rate volatility—PKR recently hit an 18-month low. 

• Debt servicing: Helps ensure timely repayment of external debt (~$8 billion due in FY25).

• Investor confidence: Strong reserves support better credit ratings and attract foreign direct investment.

• Foreign inflows: The Central bank purchased dollars in the local market. IMF support & remittances: Boosted by IMF tranches and high worker remittances. 

• Improved trade dynamics: Lower import payments and increased exports helped.

• SBP market intervention: Prevented the rupee from sharply appreciating, aiding export competitiveness.

• Currency pressure: PKR has dropped ~3 rupees in six weeks, reaching 18-month lows. 

• Debt outflows: Over $8 billion of external debt remains due by June 30.

• Trade deficits linger: Continued import payments challenge reserve stability.

• Conditional IMF support: Further disbursements require compliance with reforms.

• Economist (Profit-Pakistan):

  “Surpassing $17 billion reserves marks a significant recovery from last year’s USD 3–5 billion holdings.” 

• Market analyst:

  “Foreign inflows and steady reserves help stabilize the rupee, reduce inflation risk, and improve Pakistan’s sovereign image.”

• India vs Pakistan: India’s reserves stand at ~$688 billion, dwarfing Pakistan’s $17 billion. 

• Recovery journey: From a 2023 crisis low of $3 billion, Pakistan has steadily rebuilt reserves to current levels. 

• Global pace: $17 billion is modest globally, but crucial for a developing economy.

Crossing the $17 billion reserve threshold represents a pivotal moment in Pakistan’s economic recovery. While sizeable debt and currency pressures remain, the boosted oomph in reserves strengthens Pakistan’s import cover, debt servicing capacity, and overall investor sentiment, offering breathing space as long as smart economic management continues.