Pakistan’s foreign exchange reserve is about to reach USD 18 billion for FY26, but expanding trade deficit poses a challenge, according to a media report on Friday.
The country’s foreign exchange reserves increased by USD 43 million to reach USD 17.2 billion for the week ending May 29, putting the nation on track to reach its USD 18 billion target by the end of June, the State Bank of Pakistan (SBP) data revealed.
Financial analysts view the growth in foreign reserves as a positive indicator, though they caution that a widening trade gap could trigger a substantial current account deficit this fiscal year, The Dawn newspaper reported.
Pakistan’s foreign exchange position, though under pressure, remains part of a broader stabilisation effort under the IMF-supported reforms. To boost reserves and handle foreign debt, the apex Bank is buying dollars from the inter-bank market while …
To boost reserves and handle foreign debt, the apex Bank is buying dollars from the inter-bank market while gradually strengthening the Pakistani rupee (PKR) to manage the exchange rate.
