Debt repayments trigger $366m drop in SBP’s forex reserves

KARACHI: Foreign exchange reserves held by the State Bank of Pakistan (SBP) fell by $366.5 million during the week ending April 18, 2025, bringing the total down to $10.21 billion, according to data released by the central bank.

The weekly decline of 3.47 per cent has been linked to external debt repayments made by the SBP during the period.

Pakistan’s total foreign exchange reserves – which include holdings of both the central bank and commercial banks – also dropped by $226 million, or 1.44 per cent week-on-week, to $15.44 billion.

In contrast, reserves held by commercial banks rose by $140.5 million during the week, reaching $5.23 billion – an increase of 2.76 per cent.

So far in the current fiscal year, the SBP’s reserves have grown by $816.4 million, marking an 8.69 per cent rise. However, on a calendar year basis, they have declined by $1.5 billion, or 12.85 per cent, reflecting ongoing pressure from external payments.

At the end of March 2025, Pakistan’s total liquid foreign exchange reserves stood at $15.01 billion. Of this, the SBP held $10.639 billion, while commercial banks held $4.375 billion.

During the same month, the central bank recorded a net outflow of $610.6 million, largely due to external debt servicing obligations, underlining the continuing strain on the country’s foreign currency position.

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