The State Bank of Pakistan’s (SBP) foreign reserves have seen a drop of $143 million, bringing the total reserves to $11.71 billion. This decline, as of December 27, 2024, is due to external debt repayments, according to the latest data released by the central bank.
Pakistan’s total liquid foreign reserves, combining the SBP reserves and commercial banks’ holdings, stand at $16.41 billion. Of this, $11.71 billion is held by the SBP, while commercial banks hold $4.70 billion.
Recent economic developments include the SBP’s decision to reduce the policy rate by 200 basis points, now set at 13%. This adjustment reflects efforts to manage the country’s financial obligations, with Pakistan’s total external debt repayment for the fiscal year 2025 estimated at $26.1 billion. This includes $22.1 billion in principal payments and $4 billion in interest.
Out of these obligations, $10.4 billion has already been settled or rolled over, with another $5 billion expected to be repaid during the remainder of the fiscal year. Analysts anticipate additional rollovers to help ease the repayment burden. Optimus Capital Management projects the SBP’s reserves will surpass $13 billion by the end of FY25, which would represent an improvement of $900 million from the current figures.
Despite the current dip in reserves, financial experts remain optimistic. JS Global’s Waqas Ghani Kukaswadia highlighted that the government is working to meet its debt obligations through rollovers and refinancing deals. Approximately $16–17 billion is expected to be refinanced, reducing the net repayment to $5.5 billion for the remaining fiscal period.
On the currency front, the Pakistani rupee showed a slight depreciation against the US dollar. In the first trading session of 2025, the rupee slipped by 0.03%, closing at 278.64 against the dollar, compared to the previous day’s rate of 278.55.
Meanwhile, exchange companies have contributed significantly to supporting the nation’s economy. Secretary General of the Exchange Companies Association of Pakistan, Zafar Paracha, revealed that these companies handled $7 billion in 2024, with $3.85 billion supplied to the inter-bank market to bolster foreign reserves. An additional $3.15 billion facilitated international travel, educational expenses abroad, family assistance, and overseas medical treatments.
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