Pakistan Forex Reserves Rise to Three Year High, Signaling Economic Stability
Pakistan forex reserves have reached their highest level since March 2022.
This milestone signals growing stability in the national economy. According to official data, total reserves now stand at $21.1 billion. The State Bank of Pakistan holds $15.9 billion of this amount. As a result, import cover has crossed 2.6 months. However, this figure stood below two weeks in February 2023.
What Is Driving the Growth
Analysts say domestic growth is fueling this improvement. Confidence in reforms, therefore, plays a key role. Importantly, the rise did not come from fresh external borrowing. Instead, policymakers focused on discipline and structural changes. External debt has also eased during this period. The debt to GDP ratio fell from 31 percent to 26 percent. This shift shows reduced reliance on foreign loans. In addition, it reflects stronger fiscal management.
A Strong Turnaround Since 2023
In early 2023, reserves dropped to nearly $2.9 billion. That low point raised serious concerns across markets. Since then, reserves climbed almost 5.5 times. They now stand close to $15.9 billion with the central bank. Forward foreign exchange liabilities also declined sharply. They fell by about 65 percent, easing future payment pressure. Between 2015 and 2022, debt rose while reserves fell. However, trends reversed after 2022.
Experts see this change as a clear recovery signal.
They point to falling vulnerabilities and better financial buffers.Stronger reserves support trade and investor confidence.
As a result, economic stability continues to improve.Overall, Pakistan forex reserves highlight careful planning and steady reform.
The progress offers cautious optimism for inclusive economic growth.
