Pakistan’s economy has achieved a major milestone, with the country’s foreign exchange reserves hitting record high levels not seen since March 2022.

According to official data, total reserves have surged to $21.1 billion, reflecting renewed investor confidence and robust economic reforms.

The State Bank of Pakistan reports that its foreign currency reserves alone stand at $15.9 billion, while the country’s import coverage has exceeded 2.6 months. Economists note that this growth is not driven by external borrowing but stems from domestic economic reforms, sustainable growth, and restored market confidence.

Data also reveals a significant decline in the debt-to-GDP ratio, falling from 31% to 26%, demonstrating Pakistan’s improved fiscal discipline and effective policy measures. Experts emphasize that the increase in reserves is not a temporary fix but a sign of genuine economic revival.

Back in 2023, central bank reserves had dwindled to just $2.9 billion. Today, they have climbed nearly five and a half times, showcasing a remarkable turnaround. Additionally, forward foreign exchange obligations have decreased by approximately 65%, reducing external financial pressure and paving the way for greater economic stability.

From 2015 to 2022, Pakistan experienced rising debt levels and declining reserves. However, post-2022, a clear positive trend has emerged, marked by stronger reserves, lower debt-to-GDP ratio, and increased confidence among businesses.