SBP’s dollar-buying hunger

Business Recorder says the State Bank of Pakistan has accumulated dollars from the interbank market to lift reserves, even as Pakistan recorded current account deficits in June and July 2026. The central bank purchased USD863 million in July and USD841 million in June; its purchases from June 2024 through July 2026 totalled USD17.2 billion, according to official data.

The commentary says SBP Governor’s remarks put dollar purchases over the past four years at USD30 billion, with around USD12 billion spent on interest payments and the balance used to increase reserves. SBP has raised its remittance goal for FY27 to USD45 billion and set reserve targets of USD23 billion for December 2026 and USD25 billion for June 2027. The article argues that reserve accumulation should be balanced with exchange-rate adjustment, saying a stable rupee could constrain growth beyond 4 percent.