Overview
- Total reserves stand at $21.1 billion, including $15.9 billion held by the State Bank of Pakistan and $5.2 billion at commercial banks.
- Import cover has recovered to more than 2.6 months after falling to under two weeks in February 2023.
- Forward foreign-exchange liabilities have been cut to below $2 billion from about $5.7 billion, a reduction of roughly 65%.
- The external debt-to-GDP ratio has declined from 31% to about 26% by June 2025 while public external debt stayed broadly unchanged.
- Officials and analysts say the stronger buffers reduce sovereign external risk, improve FX liquidity for businesses, and bolster prospects for investment and credit ratings.