Pakistan forex reserves have climbed to $21.5 billion, and the State Bank of Pakistan (SBP) governor says the economy is now better able to absorb domestic and external shocks. Speaking to foreign investors on the sidelines of the IMF–World Bank Annual Meetings in Bangkok from October 12 to 17, Governor Jameel Ahmad linked the turnaround to sustained macroeconomic policies and structural reforms, according to an SBP statement.
Reserves, debt buffers and the current account
Ahmad said official Pakistan forex reserves, which had fallen below $3 billion in February 2023, stood at $21.5 billion as of October 9, 2026. Over the same period, the SBP’s forward liabilities—commitments to sell dollars in the future—fell from more than $5.7 billion to less than $1 billion. The central bank said the rebuild came largely from its own foreign-exchange purchases, while the country’s external debt stock rose only marginally over the past three years.
Those purchases were helped by an almost balanced current account in FY26. The SBP expects further FX buying, with the current account deficit—the gap when a country imports more goods, services and income than it exports—projected to stay between zero and 1 percent of GDP in FY27. Regulatory steps aimed at exchange companies and at shifting remittances into formal channels have also improved liquidity in the interbank foreign-exchange market, the SBP said.
Growth, inflation and the fiscal picture
Inflation, the SBP governor said, has fallen sharply from elevated FY23 levels to near the target range in FY26, even after a significant oil price shock. Real GDP growth, which contracted in FY23, reached 3.7 percent in FY26 and is projected at 3.5 to 4.5 percent in FY27.
On the budget side, the primary fiscal balance—the surplus or deficit before interest payments—recorded a third consecutive annual surplus in FY26. The public debt-to-GDP ratio has continued to decline as a result, the central bank said. Ahmad also told investors that a staff-level agreement had been reached with the International Monetary Fund (IMF)—the global lender that sets programme conditions—on reviews under the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF).
Timeline: what has happened so far
- February 2023: Official reserves fell below $3 billion; SBP forward liabilities stood above $5.7 billion.
- FY23: Inflation peaked at elevated levels and economic growth contracted.
- FY26: Inflation moved near the target range; real GDP growth reached 3.7 percent; the primary fiscal balance posted a third straight surplus; the current account was almost balanced.
- October 9, 2026: Official Pakistan forex reserves stood at $21.5 billion; forward liabilities were below $1 billion.
- October 12–17, 2026: Governor Ahmad met global banks and partners in Bangkok and briefed them on the improved indicators and IMF staff-level agreement.
Investor meetings and what comes next
The Bangkok programme included senior executives from JP Morgan, Citibank, Jefferies, Deutsche Bank, Barclays, Bank of America, MSCI, Standard Chartered and Mitsubishi UFJ Financial Group, as well as bilateral and multilateral partners, other central banks and credit rating agencies. Ahmad said continued reforms had lifted investor confidence, supported sovereign credit rating upgrades and helped Pakistan regain access to international capital markets despite a difficult global backdrop.
He argued that economic fundamentals remain supported by a prudent policy mix that has cushioned multiple shocks over three years. Geopolitical risks still matter, he said, but Pakistan is in a significantly stronger position to withstand the latest external stress than in earlier episodes. The governor reaffirmed the SBP’s focus on macroeconomic stability, stronger external buffers and structural reforms for durable growth.
Aasan alfaaz mein
State Bank ke governor ne kaha hai ke Pakistan ke forex reserves ab 21.5 billion dollar ho gaye hain. Pehle February 2023 mein yeh 3 billion se bhi kam the. Mehngai bhi kaafi kam hui hai aur growth 3.7 percent tak pohonch gayi. Is ka matlab yeh hai ke mulk ke paas dollar ka stock behtar hai, lekin rozmarra ke kharch ab bhi mehngai aur income par depend karte hain.
