Pakistan has paid off a massive $1.3 billion in external debt, causing a temporary drop in national reserves right before a critical IMF deadline.
Pakistan has just repaid a huge amount of foreign debt. The State Bank of Pakistan (SBP) confirmed that the country paid back $1.3 billion to international lenders. Because of this massive payment the country’s foreign exchange reserves dropped. Last week, the central bank’s own dollar reserves fell to $15.92 billion. During that same week, local commercial banks held $5.57 billion in deposits.
Despite this big drop, central bank officials say there is no need to panic. The State Bank assures that official dollar reserves will remain completely stable. In fact, a huge influx of fresh money is landing in the bank right now.
Big Loans Inflow Protects the Economy
According to the SBP, the country has successfully secured new funds from multiple international sources. These new inflows will completely erase the recent debt losses:
- International Loans: Pakistan has received $700 million in brand-new loans from global financial institutions.
- Commercial Refinancing: The country has successfully brought in another $1.7 billion through the refinancing of commercial loans.
- The Final Injection: A total chunk of $2.4 billion in fresh funds will officially show up in the foreign exchange reserves on June 30.
Meeting the IMF Target Comfortably
With these new funds the State Bank will easily hit its strict foreign exchange targets set by the IMF for June 2026. The incoming cash means that official dollar reserves are on track to exceed $18 billion by June 30.
Furthermore, the country’s total foreign exchange reserves will safely approach $24 billion by the end of June. It combines both government and commercial bank holdings. Officials confirm that this financial buffer will protect the local economy from future global shocks.
