Pakistan’s FX reserves hit $21bn, GDP growth reaches 3.7% in FY26

Mettis Global reported that Pakistan's foreign exchange reserves climbed to $21.5 billion by October 9, 2026, citing the State Bank of Pakistan (SBP), while real GDP expanded 3.7% in FY26. Governor Jameel Ahmad presented the improving economic picture to foreign investors and global financial institutions during the IMF-World Bank Annual Meetings in Bangkok, which ran from 12 to 17 October. Discussions included senior executives from JP Morgan, Citibank, Jefferies, Deutsche Bank, Barclays, Bank of America, MSCI, Standard Chartered and Mitsubishi UFJ Financial Group.

The Governor said SBP reserves had risen from under $3bn in February 2023, while the central bank's forward liabilities fell from above $5.7bn to below $1bn. He attributed the gains to SBP's foreign exchange purchases, a current account that was nearly balanced in FY26, and regulatory reforms affecting exchange companies and formal remittance channels. Inflation has dropped from high FY23 levels to nearly the target range in FY26, despite a major oil price shock.

Mettis Global added that a staff-level agreement has been reached with the IMF, covering the EFF and RSF reviews, according to the Governor. The central bank anticipates further foreign exchange buying in FY27, while the current account deficit is projected at 0% to 1% of GDP for that year. Growth for FY27 is seen between 3.5% and 4.5%, and the primary fiscal balance posted a third straight yearly surplus in FY26.