KARACHI: The State Bank of Pakistan’s (SBP) foreign exchange reser­ves have strengthened following inflows from Eurobonds, bringing the total close to the level recorded on April 3, the highest since FY22.

The SBP reported receiving $730 million from the Eurobond issuance, marking the country’s return to international debt markets after a prolonged absence.

Pakistan had announced the launch of Eurobonds on April 20. The size was increased from an initial $500m to $750m through a greenshoe option amid strong investor demand.

Meanwhile, Finance Minister Mohammad Aurangzeb recently said Pakistan would launch $250m Panda bonds in the Chinese market in May.

The SBP had targeted foreign exchange reserves of $18bn in FY26. However, the unexpected withdrawal of $3.5bn by the United Arab Emirates and a $1.4bn repayment on account of maturing Eurobonds altered the outlook. Saudi Arabia extended $3bn in support, while the Eurobond inflow of $750m helped lift SBP reserves to $15.828bn during the week ended April 24.

SBP reserves stood at $16.382bn on April 3, the highest since FY21, when reserves were recorded at $17.298bn.

Financial sector experts said the situation shifted largely due to the Gulf war that began on Feb 28, though Pakistan continues to perform better than peer economies. Prime Minister Shehbaz Sharif has announced an increase in petroleum product prices, which could further fuel inflation, already exceeding 7 per cent. He noted that Pakistan is currently spending $800m per week on petroleum imports, compared to $300m prior to the conflict.

The country’s total liquid foreign reserves stood at $21.269bn as of April 24, including $5.441bn held by commercial banks.

Published in Dawn, May 1st, 2026