SBP reports a modest weekly gain even as billion-dollar obligations loom large over Pakistan’s external account
Key Takeaways
- Reserves before outflows: SBP’s foreign exchange reserves stood at $16.4 billion for the week ended April 3, reflecting a modest $19 million gain from interbank dollar purchases, but the figure does not account for recent and upcoming debt payments.
- Major outflows underway: Pakistan has already paid $1.4 billion for a Eurobond maturity, with another $3.5 billion payment due to the UAE expected later this month, placing significant near-term pressure on the country’s external account.
- Government plays down concerns: Authorities have stated that these outflows will have minimal impact on macroeconomic stability and Pakistan’s IMF programme commitments, though reserve levels after payments will be closely monitored.
Karachi, Pakistan – Pakistan’s foreign exchange reserves held by the State Bank of Pakistan (SBP) stood at $16.4 billion for the week ended April 3, 2025, according to an official statement issued by the central bank on Thursday. Notably, this figure does not yet reflect the outflows tied to the country’s recent Eurobond maturity payment.
During the week under review, the SBP’s reserves edged up by $19 million, a sign that the central bank has been actively purchasing dollars in the interbank currency market to shore up its position.
The SBP’s statement put Pakistan’s total liquid foreign exchange reserves at $21.849 billion, which includes $5.494 billion held by commercial banks.
The SBP has already paid $1.4 billion against a maturing Eurobond obligation, and an additional outflow of approximately $3.5 billion is expected this month as part of a payment due to the United Arab Emirates.
However, the reserve picture is set to shift in the coming days. The SBP has already paid $1.4 billion against a maturing Eurobond obligation, and an additional outflow of approximately $3.5 billion is expected this month as part of a payment due to the United Arab Emirates.
Despite the scale of these outflows, the Pakistani government has sought to reassure markets and the public, stating that the impact on the country’s macroeconomic stability and its ongoing programme with the International Monetary Fund (IMF) will be limited.
Pakistan is currently operating under an IMF Extended Fund Facility, and maintaining adequate reserve buffers remains a key programme benchmark. Analysts will be watching closely to see how the post-outflow reserve level compares against those targets once the UAE payment clears.
