ISLAMABAD: Pakistan’s total foreign exchange reserves stood at US$16.6 billion for the week ending May 30, 2025, reflecting modest stability amid ongoing fiscal pressures, according to fresh data released by the State Bank of Pakistan (SBP).
Of this total, the central bank’s own reserves slightly declined by US$7 million, reaching US$11.51 billion, while commercial banks held US$5.09 billion in net reserves.
This marginal dip comes after a weekly gain of $70 million the previous week, which brought SBP-held reserves to $11.52 billion as of May 23. Earlier in May, SBP reserves had risen by $71 million, signaling some resilience in Pakistan’s foreign currency position.
Trade Balance Sees Monthly Improvement
Meanwhile, recent trade data from the Pakistan Bureau of Statistics (PBS) has revealed contrasting trends. In May 2025, Pakistan’s exports surged by 17.4% year-on-year, reaching $2.6 billion, while imports dropped by 7.6% to $5.2 billion.
As a result, the country’s monthly trade deficit narrowed by 23.47%, settling at $2.6 billion—a sign of improved export performance and controlled imports.
Long-Term Deficit Still Rising
However, over the 11-month period from July to May of FY2024-25, the cumulative trade deficit widened by 10.6%, touching $24 billion.
During this span:
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Exports rose by 4.7% to $29.45 billion
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Imports increased by 7.3% to $53.45 billion
This suggests that while monthly indicators may show progress, the overall external account remains under pressure due to high import volumes and moderate export growth.
With the federal budget for FY2025-26 set to be unveiled on June 10, stakeholders and international lenders like the IMF will be closely watching Pakistan’s macroeconomic policies—particularly those aimed at strengthening external reserves and balancing trade
