Pakistan’s Foreign Reserves Cross IMF Target as Fiscal Year Ends Strong
Pakistan has achieved a major milestone in its economic recovery by significantly boosting its foreign exchange reserves at the close of the fiscal year 2024-25. As per provisional figures shared by the State Bank of Pakistan (SBP), the country’s foreign exchange reserves climbed to $14.51 billion by June 30, 2025, exceeding the IMF-set target of $13.9 billion.
This marks a significant rise of $5.12 billion compared to June 30, 2024, when reserves were at $9.39 billion. Analysts attribute this growth to coordinated efforts between the federal government and SBP, driven by prudent economic policies and timely inflows from international lenders.
What Drove the Increase?
The sharp rise in reserves during the final week of June was primarily fueled by fresh disbursements from foreign lenders and financial institutions. Notably, the government secured $3.1 billion in commercial loans, while multilateral agencies contributed over $500 million, helping the SBP boost reserves within days.
This swift recovery followed a drop in reserves to $9.064 billion, caused by external debt repayments during the week ending June 20, 2025. The SBP’s ability to swiftly arrange funding highlights its strategic approach and crisis management capability.
Expert Reactions
Economists have praised the development as a reflection of Pakistan’s improving macroeconomic fundamentals, including:
- A balanced current account
- Growth in remittances
- Strengthened fiscal discipline
They believe the reserve buildup sends a strong signal of confidence to global markets and will support sustainable economic growth moving forward.
Topline Securities CEO, Muhammad Sohail, described the surpassing of the IMF reserve target as “a major step forward,” crediting both the SBP and the federal government for their strong policy execution. He emphasized that the uptick in reserves underlines policy effectiveness and increased foreign confidence in Pakistan’s economy.
Background and Outlook
Earlier this year, SBP Governor Jameel Ahmad had forecast that despite high debt repayments, reserves would exceed $14 billion by fiscal year-end—a prediction that has now come true. With foreign funding secured and reserve buffers replenished, Pakistan appears better positioned to navigate external financial pressures in the months ahead.
