KARACHI: Pakistan’s economy has achieved a significant milestone as the country’s foreign exchange reserves have climbed to their highest level since March 2022, according to official data.
Total foreign exchange reserves have reached USD 21.1 billion, reflecting growing investor confidence and signs of sustained economic stability. Of this amount, the State Bank of Pakistan (SBP) holds USD 15.9 billion, while the country’s import cover has exceeded 2.6 months.
Economic experts say the recent rise in reserves is not driven by short-term borrowing but is instead the result of domestic economic growth, structural reforms, and a gradual restoration of confidence. Data also shows a notable improvement in fiscal discipline, with the external debt-to-GDP ratio declining from 31% to 26%.
Analysts highlight that this improvement represents a substantial turnaround from 2023, when SBP reserves had fallen to just USD 2.9 billion. The current level of USD 15.9 billion marks an increase of nearly five and a half times over that period.
In addition, forward foreign exchange liabilities have declined by approximately 65%, significantly easing future external payment pressures.
While the period from 2015 to 2022 was marked by rising debt and falling reserves, the situation has shown clear and consistent improvement since 2022.
