Eurobond inflows lift forex reserves
- Liquid foreign exchange reserves crosses USD 21 billion-mark
KARACHI: Pakistan’s total liquid foreign exchange reserves crossed USD 21 billion-mark end of last week, supported mainly by inflows from Eurobond proceeds.
According to the weekly report issued by the State Bank of Pakistan (SBP), the country’s reserves rose by USD 641 million from USD 20.628 billion as of April 17, 2026 to USD 21.269 billion by April 24, 2026.
The state bank’s reserves showed a stronger uptick, climbing by USD 730 million to reach USD 15.828 billion end of the last week compared to USD15.098 billion a week earlier. In contrast, during the week under review net foreign reserves held by commercial banks witnessed a slight decline of USD 90 million, falling to USD 5.441 billion.
READ MORE: Pakistan upsizes Eurobond to $750mn after ‘strong investor demand’
The SBP said the increase in its reserves was largely driven by the receipt of proceeds from Pakistan’s Eurobond issuance, which helped ease external payment pressures.
Pakistan re-entered the international capital markets after four years with the launch of a three-year Eurobond. Initially set at USD 500 million, the issue attracted strong global investor interest, allowing the government to broaden participation.
Subsequently, the government increased the size of the issuance to USD 750 million, raising an additional USD 250 million through the exercise of the greenshoe option with global institutional investors.
The upsizing reflects stronger-than-expected demand and signals renewed investor confidence in Pakistan’s economic outlook and its return to international markets.
During the same period, Pakistan made external debt repayments amounting to USD 3.4 billion to the United Arab Emirates.
However, the outflows were largely cushioned by financial support, including inflows of USD 3 billion from Saudi Arabia.
Analysts say the inflows have provided short-term stability to the country’s external account, though sustained improvement will depend on continued financing support and export growth.
Copyright Business Recorder, 2026
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