Pakistan’s foreign exchange reserves experienced a weekly decline of $69 million, as revealed in the latest figures from the State Bank of Pakistan (SBP). This dip in foreign exchange reserves has brought the total to $19.9175 billion, reflecting growing concerns over the country’s external financial position.
As per the SBP’s weekly data released on Thursday, the central bank’s foreign exchange reserves now stand at $14.4566 billion. In addition, commercial banks hold reserves of $5.4609 billion, collectively making up the country’s overall foreign exchange reserves total.
This development comes just days after Pakistan recorded a surprising turnaround in its current account balance. For the fiscal year 2024–25, the nation reported a current account surplus of $2.1 billion — the first annual surplus in 14 years. This marked a notable shift from the $2 billion deficit recorded in the previous fiscal year.
Furthermore, the SBP highlighted that Pakistan achieved a monthly surplus of $330 million in June 2025. This contrasts with the significant $500 million deficit posted in June 2024, suggesting an upward trend in the country’s external sector performance.
Experts believe the primary driver of this turnaround is the surge in remittances from overseas Pakistanis. These record-high inflows have helped improve the current account position, offering a cushion against the shrinking foreign exchange reserves.
Despite the recent economic gains, the drop in foreign exchange reserves raises questions about the sustainability of the positive trends. With external loan repayments and import bills looming, maintaining a healthy reserve buffer remains essential for economic stability.
The government and the SBP may need to revisit their foreign exchange and monetary strategies to ensure long-term resilience. Analysts caution that unless inflows such as remittances and export earnings continue to rise, the pressure on foreign exchange reserves could persist in the coming quarters.
While the current account surplus offers a moment of optimism, the recent dip in foreign exchange reserves reflects the complex balancing act Pakistan must perform to navigate its financial challenges.
