Pakistan’s Foreign Reserves Cross $16.6 Billion Mark with Boost from IMF Tranche

KARACHI (Business Desk) – In a significant boost to Pakistan’s economic stability, the country’s total liquid foreign exchange reserves have surged to $16,648.5 million as of May 16, 2025. The increase marks a promising uptick in the nation’s financial outlook, driven by continued international support and prudent economic management.

According to the State Bank of Pakistan (SBP), the central bank’s own reserves witnessed a substantial increase of $1,043 million, rising from $10,403.1 million to $11,446.5 million. This sharp rise is attributed to the receipt of the second tranche of SDR 760 million (approximately $1,023 million) from the International Monetary Fund (IMF) under the Extended Fund Facility (EFF) on May 13, 2025.

The reserves held by commercial banks stood at $5,202 million, showing slight variation from the previous week’s figure of $5,210.7 million.

The total reserves during the previous week (ending May 9, 2025) were recorded at $15,613.8 million, indicating an overall weekly increase of over $1 billion in national reserves — a development seen as a strong indicator of macroeconomic improvement and growing investor confidence.

Economists are viewing this uptick as a positive sign for the country’s balance of payments position, exchange rate stability, and external sector resilience.

This increase in reserves is expected to bolster Pakistan’s import cover, support the national currency, and create room for fiscal maneuverability ahead of crucial economic reforms and upcoming negotiations with multilateral institutions.