ISLAMABAD – Pakistan’s economy witnessed another milestone, as country’s foreign exchange reserves jumped to their highest level since March 2022, reaching impressive $21.1 billion.
The surge in reserves is a clear indicator of sustainable growth and renewed investor confidence in the leadership. State Bank of Pakistan now holds $15.9 billion in reserves, while the country’s import coverage has surpassed 2.6 months, showing enhanced economic stability.
The surge is not driven by debt, but by domestic growth, economic reforms, and restored confidence, with debt-to-GDP ratio falling from 31% to 26%, reflecting strong fiscal discipline.
The increase in reserves is no short-term fix. From low of just $2.9 billion in 2023, central bank holdings skyrocketed nearly five-and-a-half times to reach $15.9 billion, having a remarkable recovery. Forward foreign exchange liabilities have also dropped by around 65%, reducing external pressures significantly.
Economists note that after years of rising debt and dwindling reserves between 2015 and 2022, the situation has dramatically improved since 2022, showing shift toward sustainable economic stability.
Strong reserves, falling debt-to-GDP ratios, increased business confidence, and overall macroeconomic stability are now tangible signs that Pakistan is moving beyond debt-dependent survival strategies toward a robust, resilient economy. This historic rise in foreign reserves is not just a number, it is a powerful symbol of Pakistan’s economic turnaround, demonstrating that the nation is on a clear path toward long-term external and financial stability.
State Bank of Pakistan s forex reserves decline to an alarming level
