SBP says requested $10bn US facility not factored into FX reserve projection

The State Bank of Pakistan says its goal of lifting foreign exchange reserves to $25 billion by June 2027 assumes no proceeds from Pakistan’s request for a $10 billion US stabilisation facility. Governor Jameel Ahmad said reserves currently stand at about $21.5 billion, enough for three months of imports, with the target expected to extend cover to four months.

Ahmad said bond sales in overseas markets, including Eurobonds and Panda bonds, would contribute to the increase. Pakistan is awaiting a decision from the US on the requested facility, which could run for up to five years if approved. The comments came at a press conference where the SBP also announced a 50-basis-point policy rate increase to 12%.