Pakistan’s foreign exchange reserves held by the State Bank of Pakistan have recorded a sharp weekly increase, reaching a near four-year high after the latest disbursement from the International Monetary Fund. According to central bank data, SBP reserves rose by $1.3 billion in a single week to stand at $15.89 billion as of December 12, 2025. The increase was driven mainly by the receipt of $1.2 billion from the IMF under the Extended Fund Facility and the Resilience and Sustainability Facility, providing much-needed external support to the economy.
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This level of reserves was last seen in March 2022. Since then, Pakistan experienced a severe external account crisis, with reserves plunging to just $2.9 billion in February 2023. Alongside SBP holdings, the country’s total foreign exchange reserves rose to $21.09 billion, including $5.20 billion held by commercial banks, reflecting a gradual improvement in overall external buffers.
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The IMF acknowledged Pakistan’s progress, noting improved fiscal discipline, a primary surplus of 1.3 percent of GDP in FY25, and a steady rebuilding of reserves despite inflationary pressures linked to floods. The SBP also confirmed that it surpassed its December 2025 reserve target of $15.5 billion despite ongoing debt repayments.
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Looking ahead, the central bank expects reserves to strengthen further to $17.8 billion by June 2026, supported by planned official inflows. While export pressures and global uncertainties remain, stable oil prices and controlled current account deficits are expected to support external sector stability in FY26.
