The State Bank of Pakistan (SBP) has purchased $9.7 billion from the interbank foreign exchange market over the past 16 months, highlighting continued pressure on dollar availability despite the rollover of most external loans and improved inflows.
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Data shows that between June 2024 and September 2025, the central bank consistently bought close to $1 billion from the market almost every month, with purchases exceeding the $1 billion mark on multiple occasions. The largest buying spree during the current fiscal year was recorded in September FY26, when the SBP purchased $1.023bn.
Strong workers’ remittances have played a key role in supporting these purchases. Remittance inflows surged to around $38bn in FY25, providing much-needed foreign exchange liquidity and easing pressure on the central bank’s reserves. This trend has continued into the first quarter of FY26.
During Q1 FY26, the SBP bought $1.469bn from the interbank market, which was lower than the $2.237bn it purchased in the same period last year. Analysts attribute the decline to relatively better external inflows and improved current account management compared to early FY25.
However, a comparison with the first half of FY25 shows heavier intervention by the central bank. In that period, the SBP purchased $946m in September, $1.026bn in October, and $1.151bn in November. These interventions were largely aimed at managing external debt repayments and stabilising the exchange rate.
Overall, between June 2024 and June 2025, the SBP bought $8.257bn, a figure that exceeds the size of Pakistan’s three-year loan programme with the International Monetary Fund. While IMF financing is often politically sensitive due to associated conditions, it remains a critical source of external support for the economy.
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Despite regular disclosures, the SBP has yet to release data on its dollar purchases for October, November and December FY26. Market participants are closely watching these figures, as they may offer further insight into the country’s foreign exchange position and the central bank’s strategy to manage external vulnerabilities.