The State Bank of Pakistan’s (SBP) foreign exchange reserves rose by $5.12 billion, reaching $14.51 billion as of June 30, marking the end of Fiscal Year 2024–25 (FY25).

The updated figure exceeds the $13.9 billion target set by the International Monetary Fund (IMF), signaling progress in Pakistan’s external sector performance.

A year earlier, on June 30, 2024, SBP’s reserves stood at $9.39 billion.

The central bank attributed the improvement to a better current account balance and the successful realization of expected inflows throughout the fiscal year.

While SBP did not elaborate on the exact reasons behind the significant rise in reserves, a statement issued last week noted that the country had received $3.10 billion in commercial loans and over $500 million in multilateral funding during the fiscal year.

The SBP’s reserves had fallen by $2.66 billion as of June 20, the second biggest weekly drop on record, due to external debt repayments.

According to media reports, China rolled over $3.4 billion in loans to Pakistan over the weekend, helping to increase the nation’s forex reserves, which the IMF requires.

Beijing refinanced a $1.3 billion commercial loan that Islamabad had repaid two months prior, and it also rolled over $2.1 billion that had been in the SBP’s reserves for the previous three years.

“With this level of SBP’s reserves, the country has met the IMF condition set for the central bank reserves above $13.9 billion set for June 30, 2025.

This is the highest weekly increase,” said Awais Ashraf, the director of research at AKD Securities Limited.

The SBP’s reserves are enough to cover 2.5 months of imports, Ashraf said.

“We expect reserves to surpass $17 billion by June 2026 due to strong remittances and a reduction in interest payments,” he added.

Two years ago, Pakistan’s foreign exchange reserves fell to extremely low levels, providing less than a month’s worth of import cover.

The government obtained a $3 billion short-term IMF bailout in response to the prospect of a sovereign debt default.

In addition, the government restricted imports and permitted more exchange rate flexibility.

The rise in forex reserves reflects improved external account management, higher remittances, better exports, and disciplined policy actions under the IMF’s guidance, Mohammad Sohail, the CEO of Topline Securities, wrote on X.

The SBP bolstered its reserves by purchasing dollars from the market.

Between June 2024 and March 2025, it bought $6.8 billion from the interbank market, indicating the availability of foreign exchange in the system.