ISLAMABAD: Pakistan’s foreign exchange reserves have increased to $21.5 billion, with the State Bank of Pakistan (SBP) governor projecting a further rise to $23 billion by December and $25 billion next year, signalling an improvement in the country’s external financial position.
According to the governor, the current level of foreign exchange reserves has reached the global benchmark, while efforts are underway to further strengthen the country’s reserve position in the coming days.
The projected increase to $23 billion by December and $25 billion next year would provide a further cushion against external payment pressures, including import financing and debt servicing obligations.
The SBP governor also said Pakistan’s external debt currently stood at around $107 billion. He referred to interest payments on foreign debt, although the period and currency basis of the reported interest payment were not specified.
Higher foreign exchange reserves can help improve a country’s capacity to meet external payment obligations and strengthen confidence in its ability to manage foreign exchange requirements. However, the sustainability of reserve growth also depends on external debt repayments, import payments, export earnings, remittances and other foreign currency inflows.
The projected reserve targets will therefore remain an important indicator of Pakistan’s external financial position in the coming months.