The State Bank of Pakistan (SBP) purchased $502 million from the interbank foreign exchange market in June 2025. This brings SBP’s total purchases for the fiscal year 2025 (FY25) to $7.7 billion, reports Topline Securities.
Analysts say SBP’s steady interventions, combined with repayments of external debt, have helped Pakistan’s foreign reserves grow significantly. The country’s reserves rose from $9.4 billion in June 2024 to $14.51 billion by June 2025. This surpasses the targets set under Pakistan’s IMF program.
The higher reserves have improved Pakistan’s import cover to approximately 2.5 months, up from about 1.7 months a year ago. Earlier in FY25, the SBP bought $522 million in May and $473 million in April, showing consistent support for the local currency.
The IMF completed its first review of Pakistan’s Extended Fund Facility (EFF) in May 2025. This approval allows further disbursements and the implementation of the Resilience & Sustainability Facility (RSF).
Rating agencies have responded positively to these developments. S&P upgraded Pakistan’s sovereign rating from CCC+ to B-, citing stronger external buffers and more stable economic policies.
Despite the positive trend, Pakistan faces external debt repayments exceeding $23 billion in FY26. Analysts warn that careful management of import-export balances, remittance inflows, and rollover risks will be necessary to maintain reserves.
Observers believe SBP’s interventions in the interbank market have strengthened investor confidence and stabilized the currency. Continued purchases, combined with the IMF program, are expected to help Pakistan navigate economic challenges in FY26 and sustain reserve growth.
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