KARACHI: Despite massive external debt servicing, Jameel Ahmed Governor State Bank of Pakistan (SBP) is confident that SBP’s foreign exchange reserves to reach above USD18 billion by June this year.
Governor SBP, in an analyst briefing after the Monetary Policy Committee meeting reiterated confidence in achieving its FX reserves target of USD 18 billion by June.
He said that out of total debt obligations of USD 25.4 billion for the current fiscal year (FY26), USD 21.2 billion has already been settled or rolled over, leaving USD 4.2 billion outstanding. Of this, USD 2.7 billion is expected to be rolled over, bringing the net repayment burden for the remaining period (April–June) down to USD 1.5 billion.
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He further noted that foreign exchange reserves have remained broadly stable at around USD 15-16 billion despite heavy repayments including USD 3.5 billion to UAE and USD 1.3 billion of Eurobond, supported by improved inflows and rollover arrangements.
On the financing side, the government has proactively secured external inflows through enhanced bilateral arrangements and Eurobond issuance in April, helping cushion the impact of recent debt and liability repayments on the SBP’s foreign exchange reserves.
In this context, SBP’s FX reserves are now projected to rise above USD 18 billion by June 2026, which would translate into slightly under three months of import cover, a level considered broadly sufficient to provide comfort to the market.
Following the recent regional conflict, home remittances for FY26 are now expected at USD 41 billion, slightly lower than the pre-crisis estimate of USD 42 billion. This assessment is based on stress testing, while early April trends indicate that inflows remain broadly stable after adjusting for Ramazan-related seasonal effects.
Going forward, the Monetary Policy Committee has emphasized the need for further strengthening in FX buffers amidst the uncertain global economic conditions.
Copyright Business Recorder, 2026
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