Pakistan’s total liquid foreign exchange reserves increased by $1.034 billion over the past week, largely due to the release of a loan tranche from the International Monetary Fund (IMF).

According to the State Bank of Pakistan (SBP), with the new IMF funding, the country’s total foreign exchange reserves have surpassed the $16 billion threshold, reaching $16.649 billion as of May 16, 2025—up from $15.614 billion on May 9, 2025.

This is the first time since November 2024 that reserves have crossed the $16 billion mark. During the week, SBP’s own reserves rose by $1.043 billion, reaching $11.447 billion from $10.403 billion a week earlier—marking a four-month high.

The SBP received the second installment of 760 million Special Drawing Rights (SDRs), equivalent to $1.023 billion, from the IMF under the Extended Fund Facility (EFF) program on May 13, 2025. This contributed to the increase in reserves. Meanwhile, net foreign exchange reserves held by commercial banks declined slightly by $9 million, settling at $5.202 billion.

Additionally, the IMF has approved a Resilience and Sustainability Facility (RSF) for Pakistan, granting access to about $1.4 billion (SDR 1 billion). This aims to strengthen Pakistan’s ability to withstand climate-related shocks and support sustainable development. The RSF is part of a broader 37-month EFF program worth $7 billion, designed to support Pakistan’s economic recovery and stabilization.

The disbursement of the IMF tranche is also expected to open the door to additional funding from other international donors and financial institutions.

SBP Governor Jameel Ahmed has expressed confidence that the central bank’s reserves will continue to grow, potentially surpassing $14 billion by June 2025, backed by strong foreign inflows.

Read more

IMF declares Pakistan made significant progress as economic review talks conclude

Pakistan to receive $2.3bn from IMF under EFF and RSF arrangements

Fitch Ratings upgrades Pakistan’s IDR to “B-”

Moreover, on May 19, the IMF introduced 11 new structural benchmarks (SBs) under its $7 billion Extended Fund Facility (EFF) for Pakistan

Hence, on May 18, sources revealed that the government prepared a comprehensive plan to raise electricity, gas, and petroleum prices from the beginning of the new fiscal year.

Also, they lowered Pakistan’s GDP growth forecast for the outgoing fiscal year 2024-25 to 2.6%, down from its earlier projection of 3.2% in October.