Forex reserves reach USD21.7bn: Schehzad

ISLAMABAD: Pakistan’s foreign exchange reserves increased to around USD 21.7 billion, reaching a four-year high and extending gains for 33 consecutive weeks, as the country continues to show macroeconomic stability along with improving key economic indicators, Adviser to the Finance Minister Khurram Schehzad said on Sunday.

In a post on social media platform X on Sunday, he said Pakistan is moving forward with strengthened economic stability, improving macroeconomic indicators, and an active diplomatic role despite regional tensions and global conflict risks.

He said Pakistan is emerging as an important diplomatic bridge in global affairs, playing a role in easing tensions through engagement with the United States, Iran, and the Gulf Cooperation Council (GCC).

Schehzad said that Pakistan’s review under the International Monetary Fund (IMF) programme has been successful, with the reform process remaining on track and producing positive outcomes.

READ ALSO: Forex reserves up by USD26m

He further highlighted that fuel reserves have improved to nearly four weeks of coverage despite global disruptions, while better access to shipping routes through the Strait of Hormuz has also supported regional stability. The adviser said Pakistan is re-establishing itself as a key gateway for Asian trade corridors, with ports and connectivity benefiting from shifts in global trade flows. He added that the country has also recorded a current account surplus at a one-year high.

Referring to industrial performance, he said large-scale manufacturing grew by 12.1 percent month-on-month and 10.5 percent year-on-year, while overall growth reached 5.8 percent during the first seven months of FY2025–26, driven by the automobile, cement, garments, and petroleum sectors.

He also pointed to a landmark 5G spectrum auction, which attracted over $500 million in investment, reflecting strong investor confidence and accelerating digital transformation.

According to him, both global and local investors have announced multi-billion-dollar investments, including VEON, Nestlé, SOCAR, as well as new entrants such as Google, BYD, Aramco, AD Ports, and Mashreq Bank.

He said that remittances and IT exports have also seen significant growth. He said that remittances increased by 11 percent, reaching $26.5 billion in eight months, and are expected to exceed $41 billion by the end of the fiscal year. He said that IT exports have increased by 20 percent, reaching $3 billion, and are expected to exceed USD4 billion. Citing an Ipsos survey, he said public confidence has also improved significantly, with the perception of the country moving in the right direction rising from 12 percent to 40 percent.

He said that the combined trend of improving economic indicators, rising reserves, stronger investor interest, and expanding diplomatic engagement reflects that Pakistan is moving in a positive direction despite external challenges.

Copyright Business Recorder, 2026