SBP’s Dollar Purchases from Interbank Market Near $8 Billion FY25

The State Bank of Pakistan (SBP) purchased $502 million from the interbank foreign exchange market in June 2025, according to a report by Topline Securities. This latest intervention brings the central bank’s total foreign currency purchases for the current fiscal year (FY25) to $7.7 billion. Analysts say these steady purchases, combined with repayments of external debt, have helped Pakistan’s foreign exchange reserves grow significantly. The country’s reserves rose from $9.4 billion in June 2024 to $14.51 billion by June 2025. Earlier, the central bank purchased $522 million in May 2025 and $473 million in April 2025. The $14.51 billion reserve level surpasses Pakistan’s IMF program target and marks the highest reserve level in recent years, improving import cover to approximately 2.5 months, up from about 1.7 months a year ago. The IMF’s first review of Pakistan’s Extended Fund Facility (EFF) was completed in May 2025, paving the way for additional disbursements and the approval of the Resilience & Sustainability Facility (RSF). Rating agencies have responded positively: S&P upgraded Pakistan’s sovereign rating to B- (from CCC+), citing stronger external buffers and more stable policies. However, external obligations remain heavy, with Pakistan facing external debt repayments exceeding $23 billion in FY2026, which continues to place pressure on sustainability. As Pakistan proceeds under the IMF program, future reserve trends will depend on managing the import-export balance, remittance inflows, and the country’s ability to handle rollover risks amid upcoming debt maturities.