ISLAMABAD – July 10, 2025: The State Bank of Pakistan (SBP) has reported a significant improvement in the country’s external position, as total foreign exchange reserves have crossed the $20 billion mark. This milestone reflects a notable rebound in Pakistan’s financial outlook amid rising remittances and external financing.
According to official figures, SBP’s foreign reserves increased by $1.77 billion, reaching $14.5 billion — surpassing the IMF’s end-June target of $13.9 billion. Commercial banks are currently holding an additional $5.53 billion, bringing the overall total to $20.03 billion.
READ MORE: Pakistan’s Foreign Exchange Reserves Reach $16.05 Billion
The improvement is largely attributed to record-high remittance inflows. In fiscal year 2024–25, overseas Pakistanis sent home a historic $38.3 billion, marking a 27% year-on-year increase. For June 2025 alone, remittances stood at $3.4 billion, showing an 8% rise compared to the same month last year.
Saudi Arabia remained the top source of remittances with $823 million in June, followed by the UAE with $720 million. The United Kingdom contributed £540 million, while the United States sent $280 million.
These robust inflows have supported Pakistan in achieving a current account surplus — a rare development after years of deficits. Analysts credit the surplus to strong non-debt inflows, improved export earnings, and stable import levels.
READ MORE: Pakistan’s Foreign Exchange Reserves Hit US$ 14.82 Billion
The rise in reserves and remittances comes amid expectations of an upcoming agreement with the International Monetary Fund for a new medium-term loan program. Economic experts have called the recent figures a “positive signal” for global lenders and investors.
Despite the encouraging trend, Pakistan still faces over $20 billion in external debt repayments during FY2025. Experts warn that continued policy discipline and sustained inflows will be essential to maintain financial stability in the months ahead.
