The State Bank of Pakistan (SBP) reported a minor decline of $7 million in its foreign exchange reserves for the week ending May 30, 2025. This brought the SBP’s total reserves to $11.51 billion, according to data released on Thursday. The small dip reflects ongoing challenges in managing foreign currency amid repayments and imports.
Despite this slight drop, Pakistan’s overall liquid foreign reserves—including those held by commercial banks—remained steady at $16.60 billion. Commercial banks held $5.09 billion in reserves, showing stability amid the central bank’s fluctuation.
The small decline follows a major boost the previous week, when SBP’s reserves jumped by over $1 billion. This increase came after Pakistan received the second tranche of funds under the International Monetary Fund’s (IMF) Extended Fund Facility (EFF). The tranche helped shore up the country’s foreign currency position.
Earlier in May, the IMF disbursed Special Drawing Rights (SDR) worth about $1.02 billion following the successful completion of the first review of Pakistan’s EFF programme. These funds are critical for Pakistan to meet external financing needs and improve economic stability.
Overall, while the weekly dip is minor, IMF inflows continue to support Pakistan’s efforts to maintain adequate reserves amid rising import bills and debt obligations. The government is focused on economic reforms to ensure sustainable growth and external balance.