Pakistan’s foreign exchange reserves have hit an all-time high. For the first time ever, the country’s total dollar reserves have crossed $26 billion. This is a milestone for Pakistan.
The State Bank of Pakistan says its own reserves have now gone past $21 billion. That shows an improvement in the country’s external financial position. It also means that import cover has been restored to more than three months—something Pakistan had not seen in five years.
According to the State Bank, when you include the dollar holdings held by banks, the total national foreign exchange reserves stand at $26.5 billion.
This record level was reached after Pakistan sold $3 billion worth of Eurobonds. The government also bought dollars from the market. These moves together helped boost the country’s foreign exchange reserves to a high.
The combination of Eurobond proceeds and market purchases played a role in pushing the reserves to this historic level.
SBP reserves surpass $21 billion
The banks’ foreign exchange reserves have now gone past $21 billion for the first time, showing a big change in Pakistan’s reserve situation.
The newest amount means Pakistan has again gathered enough dollar reserves to pay for more than three months of imports, a goal the country had not reached for about five years.
The change gives space for the country’s foreign exchange situation and makes it stronger when it comes to handling dollar needs for imports.
Reserves rebound from $3 billion in 2023
Pakistan’s latest reserve milestone shows a recovery from the crisis levels seen in 2023.
At that time, the Bank of Pakistan’s reserves had fallen to $3 billion, which put a lot of pressure on Pakistan’s ability to meet external payment obligations and finance its imports.
Over the three years, the Bank of Pakistan has successfully increased its reserves from about $3 billion to more than $21 billion.
The buildup in foreign exchange reserves is also expected to help keep the currency market stable.
Experts predict that the Pakistani rupee will stay stable against the US dollar soon thanks to foreign exchange availability and a stronger reserve position.
The record reserves, with the return of more than three months of import cover, mark a major shift from the severe dollar liquidity pressures Pakistan faced in 2023.
