PM Shehbaz hails record rise in Pakistan’s Forex reserves as historic milestone

Pakistan’s foreign exchange reserves have reached a record high of $21.4 billion, with Prime Minister Shehbaz Sharif describing the milestone as another significant step toward economic stability.

The prime minister expressed gratitude over the rise in the country’s reserves and credited the improvement to the government’s economic team, stronger remittances, increased services exports and better management of the current account.

According to Shehbaz, the increase reflects the impact of measures taken to strengthen the economy and improve Pakistan’s external financial position.

He said the record reserves would not only enhance the country’s ability to meet external payment obligations but would also improve its capacity to withstand global economic challenges.

The prime minister also highlighted Pakistan’s renewed access to international capital markets, describing it as a sign of recovering international confidence in the country’s economy.

He said a stronger economic position could create new opportunities for foreign investment and support sustainable economic growth.

“Reaching $21.4 billion in foreign exchange reserves is evidence of the economic team’s hard work and measures taken in the right direction,” the prime minister said, according to the statement.

Shehbaz Sharif also praised Finance Minister Muhammad Aurangzeb, the State Bank of Pakistan governor, members of the government’s economic team and, in particular, overseas Pakistanis whose remittances have contributed to the country’s foreign exchange position.

The development comes as Pakistan continues efforts to strengthen its external account and rebuild economic stability following years of pressure on its foreign exchange position.

The State Bank of Pakistan had reported a day earlier that the country’s total liquid foreign exchange reserves had crossed $26.79 billion following inflows from Eurobonds, while reserves held by the central bank reached their highest level in the country’s history, according to the report.

The rise in reserves provides a larger buffer for external payments, including debt servicing and essential imports, while also giving policymakers greater room to manage external economic pressures.

Remittances from overseas Pakistanis and improvements in services exports have remained important sources of foreign exchange. A stronger current-account position can also reduce pressure on the country’s external financing requirements.

The government has been seeking to consolidate these gains through fiscal discipline, improved external financing and measures aimed at increasing exports and investment.

The record reserve level is therefore being presented by the government as an important economic milestone, although maintaining the improvement will depend on continued growth in foreign exchange inflows, fiscal management and external-sector stability.