Foreign exchange reserves held by the State Bank of Pakistan (SBP) have fallen by $540 million over the past week, reaching $10.61 billion as of March 21, according to data released on Thursday.
In total, Pakistan’s liquid foreign reserves stand at $15.55 billion, with $4.94 billion of that amount held by commercial banks.
This marks the lowest level of SBP reserves in six months. The central bank has attributed the drop to payments made for external debts.
“During the week ending on March 21, 2025, SBP reserves fell by $540 million to $10.61 billion due to external debt repayments,” the SBP stated.
In contrast, the previous week saw an increase of $49 million in the SBP’s foreign exchange reserves.
Earlier this week, the International Monetary Fund (IMF) announced that its staff had reached an agreement with Pakistan’s authorities on a new $1.3 billion loan. This deal also includes the first review of the ongoing 37-month bailout programme.
Once the IMF’s Executive Board gives its approval, Pakistan will be able to access the $1.3 billion loan under a new 28-month climate resilience programme. Additionally, $1 billion will be unlocked as part of the existing $7 billion bailout plan, bringing total disbursements to $2 billion.
The expected inflow from the IMF is likely to strengthen Pakistan’s foreign exchange reserves.
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