Heavy debt repayments: Forex reserves drop by over USD1bn

The State Bank of Pakistan’s (SBP) foreign exchange reserves fell by more than USD 1 billion in the first week of FY27 due to heavy external debt repayments, after reaching a record high of USD18.4 billion at the end of the previous fiscal year. The SBP’s achievement of building foreign exchange reserves to USD 18.47 billion proved short-lived, as its reserves fell below the USD 18 billion mark within a week due to debt servicing. According to weekly report issued on Thursday, during the last week, SBP’s foreign exchange reserves decreased by USD 1.245 billion to USD 17.226 billion as of July 10, 2026 compared to USD 18.471 billion as of July 3, 2026.