SBP’s reserves hit all-time high at USD21.4bn

Business Recorder reported that the State Bank of Pakistan's foreign exchange reserves climbed to a record USD 21.4 billion once Eurobond proceeds arrived. Early September brought about USD 3 billion from a dual-tranche bond sale, the largest single global bond transaction the country has completed. The package comprised a USD 1.75 billion note with a 5.5-year term and a USD 1.25 billion 10-year note, drawing offers of around USD 6 billion.

In its monetary policy statement, the central bank linked the increase to the Eurobond issuance and its own significant purchases of foreign currency. The SBP had set a December 2026 reserves goal of USD 20.20 billion, a level it has now passed ahead of schedule. An analyst at Topline noted that the figure also exceeds a USD 21 billion objective for June 2027, and said a revised target will be shared at the next policy meeting.

Looking ahead, the SBP expects planned inflows and continued FX buying to support reserves projected to near three months of import cover by end-June 2027. External debt repayments for FY27 are put at USD 21.5 billion, USD 5 billion less than the previous year, with USD 11 billion net payable after rollovers. The bank cautioned that this outlook could be affected by high global commodity prices and supply constraints tied to Middle East developments.