SBP-held reserves up $48.9 million, overall cross $16 billion

KARACHI: The State Bank of Pakistan’s (SBP) foreign exchange reserves increased by $48.9 million, or 0.44 per cent, reaching $11.15 billion during the week ending on March 14, 2025, according to data released on Thursday.

Overall, the country’s total reserves saw a rise of $86.9 million, or 0.55 per cent, bringing the total to $16.02 billion. Reserves held by commercial banks also increased by $38 million, or 0.79 per cent, reaching $4.87 billion.

In the current fiscal year, SBP’s reserves have grown by $1.76 billion, marking an 18.72 per cent increase. However, in the ongoing calendar year, there has been a decline of $563.7 million, reflecting a 4.81 per cent drop.

Separately, profits and dividends repatriated by foreign investors in Pakistan surged by 104 per cent in the first eight months of the current fiscal year (FY25), indicating improved economic conditions and investor confidence.

According to SBP, foreign investors repatriated $1.55 billion between July and February of FY25, a significant jump from the $760 million repatriated during the same period in FY24. This $791 million rise is seen as a result of improved external accounts, allowing foreign businesses more freedom to transfer their revenues since the beginning of FY25.

Analysts suggest that this increase points to a gradual economic recovery as companies regain confidence in Pakistan’s financial stability. Last year, the government had imposed temporary restrictions on profit repatriation to manage external liabilities and protect foreign reserves.

However, the recent figures suggest a return to normalcy, with foreign companies now able to repatriate their earnings without restrictions, reflecting better foreign exchange liquidity and a more stable policy environment.

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