Pakistan’s total liquid foreign exchange reserves rose to $15.58 billion during the week ending March 28, 2025, reflecting a positive uptick in the country’s financial position.
According to the State Bank of Pakistan (SBP), the central bank’s own reserves grew by $70 million, reaching $10.676 billion. Meanwhile, commercial banks across the country collectively held $4.903 billion in foreign reserves during the same period.
In comparison, Pakistan’s total reserves stood at $15.551 billion the previous week (ending March 21, 2025), with SBP holding $10.606 billion and commercial banks $4.944 billion. This shows a marginal net increase in reserves, which analysts attribute to improved inflows and tighter fiscal controls.
What Are Foreign Reserves?
Foreign exchange reserves, commonly referred to as foreign reserves, are external assets held by a country’s central bank in foreign currencies. These reserves typically include:
- Foreign currency (like USD, EUR, CNY)
- Gold
- Special Drawing Rights (SDRs) from the IMF
- International bonds and treasury bills
Foreign reserves are crucial for:
- Managing a country’s exchange rate stability
- Paying off external debt
- Covering import bills
- Instilling investor confidence in the economy
A rise in reserves is generally considered a positive indicator of economic health and financial stability.
SBP Injects Over Rs 2 Trillion Through Market Operations
In a separate monetary move, the SBP conducted an Open Market Operation (OMO) on April 3, 2025, injecting a massive Rs 2,016.15 billion into the banking system through a 4-day reverse repo purchase.
The central bank accepted all 13 bids received at a rate of return of 12.09%, which was the lowest quoted rate. The move aims to manage short-term liquidity in the financial sector and ensure smooth functioning of money markets.
With steady foreign exchange reserves and proactive monetary operations, Pakistan’s central bank appears to be taking a balanced approach to economic management amid external pressures and ongoing fiscal reforms.
