Pakistan's State Bank Reserves Decline by $2.6 Billion Due to Debt Repayments

The State Bank of Pakistan’s foreign exchange reserves decreased by over $2.6 billion in a week due to significant external debt repayments. However, the bank is expected to recover with fresh inflows of over $3 billion, which will be reflected in the reserves data next week. The reserves fell to $9.065 billion as of June 20, 2025, down from $11.72 billion on June 13, 2025.

Recent inflows include commercial loans of $3.1 billion and multilateral loans of over $500 million. These inflows will be shown in the reserves for the week ending on June 27, 2025.

During the same period, commercial banks' net foreign reserves increased slightly to $5.333 billion. The country's total liquid foreign reserves decreased to $14.4 billion on June 20, 2025, from $17 billion on June 13, 2025.

Governor SBP Jameel Ahmed is optimistic that the foreign reserves will reach $14 billion by the end of fiscal year 2025. Analysts noted that Pakistan has effectively managed external debt servicing this fiscal year.

According to the source: Business Recorder.