Key point:
* Foreign exchange reserves rise above USD 21 billion for the first time in months.
* Central Bank-held reserves neared USD 15.9 billion; commercial banks hold another USD 5.2 billion.
* The milestone signals strengthening external buffers amid ongoing macroeconomic stabilisation.
ISLAMABAD: Pakistan’s foreign exchange reserves have climbed past the USD 21 billion threshold, according to the State Bank of Pakistan (SBP) latest data, marking a significant improvement in the country’s external liquidity position.
Figures released by the SBP show that reserves held by the central bank stand at approximately USD 15.886 billion, and commercial banks hold around USD 5.202 billion, bringing total liquid foreign exchange reserves to about USD 21.089 billion as of mid-December 2025.
The crossing of the USD 21 billion mark comes amid fresh IMF disbursements and other external inflows, which have bolstered Pakistan’s external buffers after a prolonged period of tight reserve levels. Local business sources also reported a recent increase in reserves that rose above the USD 21 billion point, reflecting continued accumulation.
Economic analysts say the growth in reserves enhances the country’s ability to finance critical imports, supports confidence in the rupee, and provides greater policy space for monetary authorities as they navigate ongoing challenges in the balance of payments.
However, while crossing the USD 21 billion mark is seen as a positive development, experts caution that sustainable reserve levels still require continued inflows from exports, remittances, and financing arrangements, as well as prudent macroeconomic management.
The SBP’s move last week to cut the key policy rate by 50 basis points to 10.5 per cent, aimed at supporting domestic growth while maintaining price stability, is expected by some analysts to play a role in broader economic conditions that influence external sector dynamics, according to Reuters.
As Pakistan heads into the final weeks of 2025, all eyes will be on further reserve movements and the pace of external receipts, which will be closely monitored by policymakers and markets alike.
