SBP reserves drop by $2.7b

Pakistan's foreign exchange reserves held by the State Bank of Pakistan (SBP) fell sharply by $2.66 billion during the week ended June 20, 2025, bringing the total to $9.06 billion. "This marks the second-largest weekly decline since data was available, ie, 2011," noted Arif Habib Limited (AHL). The steepest fall on record was the $2.91 billion drop seen in March 2022. The decline was driven primarily by external debt repayments by the government of Pakistan, with a major portion attributed to the repayment of commercial loans, the State Bank said. However, the pressure on reserves is expected to ease in the coming days. During the current week, the SBP has received $3.1 billion in fresh commercial borrowing and over $500 million from multilateral sources. These inflows are expected to be reflected in reserves data for the week ending June 27, 2025, the central bank added. As of June 20, 2025, Pakistan's total liquid foreign currency reserves stood at $14.4 billion, comprising $9.06 billion held by the SBP and $5.33 billion held by commercial banks.