The State Bank of Pakistan (SBP) has exceeded the International Monetary Fund’s (IMF) target for Net International Reserves (NIR) for December 2024, confirming the central bank’s solid financial management.
During a post-Monetary Policy Committee (MPC) briefing on Tuesday, Governor Jameel Ahmed revealed that the SBP remains well-positioned to meet its June 2025 targets as well.
Highlighting Pakistan’s economic progress, Governor Ahmed emphasized that all IMF targets for December 2024 have been successfully achieved, bolstering confidence in the country’s fiscal stability. He expressed optimism about maintaining this momentum and meeting the upcoming June 2025 targets.
The governor also addressed Pakistan’s external debt obligations for the rest of the fiscal year. After accounting for rollovers and refinancing, Pakistan faces approximately $3 billion in repayments for the remainder of FY25.
Overall, the country’s total debt repayment for the fiscal year stands at $26 billion, including $21.9 billion in principal and $4.1 billion in interest.
Governor Ahmed assured that the SBP has already rolled over $9.5 billion, with nearly $7 billion in repayments completed so far. The remaining $16.2 billion is expected to be managed through further rollovers and repayments.
Furthermore, Governor Ahmed noted that external inflows planned for the coming months are anticipated to materialize by Q4 FY25, though some inflows are contingent upon the successful completion of the IMF’s next review.
Regarding the Rs3 million cap on auto financing, the SBP stated that the current regulations will remain in place for now, with future changes dependent on evolving economic conditions.
The governor also addressed concerns over the recent increase in Open Market Operations (OMO), explaining that the rise was driven by seasonal cash demands during Ramadan and higher borrowing by the SBP from commercial banks due to reduced external financing. He assured that the situation is likely to stabilise as external inflows come through.
Touching on external borrowing, Governor Ahmed confirmed that the SBP has avoided taking on new external loans recently to negotiate more favorable terms, with progress expected in the coming months.
