The State Bank of Pakistan (SBP) has purchased $7.76 billion from the interbank foreign exchange market over the past 12 months. These purchases were made to support the rupee and increase the country’s foreign exchange reserves.
According to data released by SBP and shared by Topline Securities, the central bank bought $522 million in May 2025 alone. This brought the total intervention between June 2024 and May 2025 to nearly $7.8 billion. In April 2025, the SBP had purchased $473 million from the market.
As a result of these interventions, SBP’s reserves rose from $9.4 billion in June 2024 to $11.5 billion by May 2025. However, the central bank noted that reserves are still influenced by external debt repayments and new inflows. These factors may cause reserves to fluctuate in the short term.
Despite this, Pakistan’s external account showed improvement in FY2025. The country recorded a $2.1 billion current account surplus during the fiscal year. This was a major shift from past deficits and was supported by an IMF loan programme, higher remittances, falling inflation, and stable exchange rates.
However, the start of FY2026 brought some challenges. In July 2025, Pakistan posted a $254 million current account deficit. This was lower than the $348 million deficit recorded in the same month last year.
Looking ahead, SBP expects its reserves to reach $15.5 billion by December 2025. The central bank projects reserves could grow to $17 billion by June 2026 if inflows continue.
Pakistan still faces significant external debt repayments. SBP estimates $25.9 billion will be due in FY2026. This includes $22 billion in principal payments and $4 billion in interest.
SBP continues to monitor the market closely. Its ongoing efforts aim to keep the rupee stable and maintain reserve levels in a challenging economic environment.
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