Pakistan’s foreign exchange reserves have crossed $22.5 billion for the first time in over four years, helped by inflows from the International Monetary Fund (IMF) program and proceeds received through Panda Bonds.
The sharp increase comes despite continued repayments of external loans, signaling improved stability in the country’s external financial position.
According to the State Bank of Pakistan (SBP), the country’s total foreign exchange reserves increased by $1.25 billion during the latest reporting week. Pakistan’s overall reserves now stand at $22.58 billion.
The central bank said the rise was mainly supported by two tranches received under the IMF program as well as dollar inflows from Panda Bonds.
Total liquid foreign #reserves held by the country stood at US$22.59 billion as of May 15, 2026.
— SBP (@StateBank_Pak) May 21, 2026
For details: https://t.co/WpSgomnKT3
#SBPReserves pic.twitter.com/MUMuHIVnlE
State Bank reserves show major increase
The SBP’s own foreign exchange reserves recorded the biggest jump during the week. Official reserves held by the central bank increased by $1.21 billion, reaching $17.81 billion.
The increase came even though Pakistan also made repayments on some external loans during the same period, according to the central bank.
Commercial bank reserves also improve
Foreign exchange reserves held by commercial banks also posted a modest increase. The reserves of commercial banks rose by $38.2 million to $5.57 billion.
The combined increase in both central bank and commercial bank reserves pushed Pakistan’s total reserves above the $22.5 billion mark.
IMF, Panda Bonds strengthen reserves
The latest improvement highlights the importance of IMF financial support and Pakistan’s access to international capital markets.
Panda Bonds, which are yuan-denominated bonds issued in China’s financial markets, contributed additional foreign currency inflows that strengthened the country’s reserve position.
Economists often view rising reserves as a positive indicator for currency stability, external debt management, and investor confidence.
The increase in reserves is particularly notable because Pakistan continued servicing its foreign obligations during the week. The State Bank confirmed that some external debt repayments were made, yet reserves still climbed significantly.
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