Pakistan’s forex reserves are dwindling, with the State Bank of Pakistan (SBP) reporting a $72 million drop for the week ending August 1, 2025, bringing reserves to $14.232 billion. This marks the third consecutive week of decline, erasing $294 million since July 11, despite earlier gains from an IMF programme. The SBP blames scheduled external debt repayments, with $26 billion paid in FY25 and a similar burden looming for FY26.
Forex Reserves Shrinking
“It’s hard to plan a future when the country’s wallet is shrinking,” said Ayesha, a Karachi shopkeeper, reflecting public unease. Total liquid reserves, including $5.263 billion held by commercial banks, stand at $19.495 billion. Posts on X highlight mixed sentiments, with some praising past reserve highs under the IMF, while others warn of a “debt-based” recovery.
Economic Strain on Pakistan
The falling forex reserves, critical for imports and debt servicing, raise fears of economic strain. As Pakistan navigates global pressures, the nation holds its breath for stability.
Published in SouthAsianDesk, August 8th, 2025
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