Pakistan’s Forex Reserves Rise to USD 14.33 Billion Amid Strong Remittances

Karachi: Pakistan’s foreign exchange reserves held by the State Bank of Pakistan (SBP) rose by USD 34 million to reach USD 14.336 billion during the week ending September 5, according to data released on Thursday.

The country’s total liquid reserves stood at USD 19.681 billion, reflecting an increase of USD 21 million. However, reserves held by commercial banks fell by USD 12 million, bringing their total to USD 5.345 billion. With the latest rise, the SBP’s reserves can now cover 2.63 months of imports.

This marks the fifth consecutive weekly increase in central bank reserves. While the SBP has not given a specific reason, analysts attribute the uptick to robust remittances and consistent foreign exchange purchases by the central bank.

Remittance inflows from overseas Pakistanis grew 7% year-on-year, reaching USD 6.4 billion in the first two months of FY2025-26. In August alone, inflows stood at USD 3.1 billion—7% higher than last year but slightly down by 2% compared to July.

Meanwhile, Pakistan’s total external debt and liabilities climbed to USD 134.97 billion as of June 30, 2025, up from USD 131.04 billion a year earlier. Debt servicing also rose, with total payments hitting USD 18.049 billion in FY25 compared to USD 16.932 billion in FY24. Of this, USD 5.338 billion was paid in interest—down sharply from USD 11.475 billion a year earlier—while principal repayments jumped to USD 12.711 billion from USD 5.458 billion.

According to a report by Topline Securities, Pakistan’s external debt-to-GDP ratio remained steady in FY25 at a seven-year low. In dollar terms, external public debt increased by 5.6%, while in rupee terms it rose 7.6%—both below the nominal GDP growth rate of 8.2%. The report further noted that external debt servicing to FX reserves stood at 115% in FY25, though this ratio is expected to improve in FY26 with reserves projected to rise by June 2026.