Over the past year the SBP has bought almost 8 billion in the interbank market to help build up foreign currency reserves and stabilize the rupee. Official figures indicate that in May alone the State Bank has bought up $522 million taking the total interventions between June 2024 and May 2025 to nearly $7.8 billion. The central bank in April had given another $473 million to the market keeping in view the stability of the currency.
These operations increased the foreign reserves of SBP and the result was that in June 2024 it was 9.4 billion and in May 2025, it has surged to 11.5 billion and the authorities pointed out that still reserves are volatile due to debt repayment and inflows. In FY2025, Pakistan recorded a current account surplus of 2.1 billion, with the help of IMF, very good flow of remittance, declining inflation and keeping interest rates low.
Although this was an improvement, the country went back into deficit at the beginning of FY2026 with a surplus of only $254 million in July compared to a loss of $348 million last year. The SBP predicts the reserves will be worth at least 15.5 billion by the end of 2025 and 17 billion in the middle of the next year.
Read more: Pakistani Rupee Surges Against US Dollar in Interbank Market
Externally-reported debt is also high and FY2026 repayments, at an estimated $25.9 billion, comprise $22 billion in principal and 4 billion dollars of interest. Further interventions by the SBP on interbank market of nearly 8 billion, on behalf of sustaining the rupee and reigning foreign reserves, will continue to be important.
