Pakistan’s forex reserves rise to $21.5bn as SBP pitches economic recovery to global investors

Jameel Ahmad, Governor of the State Bank of Pakistan, told overseas investors that official reserves have climbed to $21.5 billion from under $3 billion in February 2023. Speaking at Bangkok gatherings tied to the IMF and World Bank annual meetings, he noted that forward liabilities had dropped below $1 billion. A central bank release on Saturday quoted him saying stronger buffers and tighter public finances leave the country better placed to absorb outside shocks.

Ahmad met representatives of global financial institutions from October 12 to 17, among them JPMorgan, Citibank, Jefferies, Deutsche Bank, Barclays, Bank of America, MSCI, Standard Chartered and Mitsubishi UFJ Financial Group. Most of the reserve gain, the SBP said, came from foreign currency purchases rather than heavy new borrowing, while external debt edged up only marginally.

Output grew 3.7% in real terms in FY26 after a contraction in FY23, and the SBP projects 3.5 to 4.5% growth in FY27. Inflation fell to nearly the central bank's band in FY26 despite a major oil price jolt, and the country logged a primary surplus for a third straight year. Ahmad also referred to an IMF staff-level agreement on EFF and RSF reviews, which he linked to better sovereign ratings.