SBP Buys Over $20 Billion in 3 Years to Support Foreign Exchange StabilitySBP Buys Over $20 Billion in 3 Years to Support Foreign Exchange Stability
The State Bank of Pakistan (SBP) has kept its policy rate steady at 11 percent, in line with market expectations, following its latest Monetary Policy Committee (MPC) meeting on October 27, 2025. T
The central bank highlighted its significant activity in the foreign exchange market, revealing that it has purchased over $20 billion in the last three years.
A key highlight from the press release and analyst briefing was the SBP’s ongoing intervention in the currency market. The central bank has bought more than $20 billion since 2022, and continues to purchase dollars after meeting requirements for repayments and repatriation. This strategy aims to strengthen Pakistan’s foreign exchange reserves and stabilize the rupee.
According to the MPC statement, the impact of recent floods is expected to be less severe than previously feared. As a result, SBP now projects GDP growth for FY26 to be in the upper half of the 3.25%-4.25% range, an improvement from earlier forecasts.
On the external front, Pakistan has already repaid $3.1 billion out of a net $10 billion due for FY26. The SBP governor also confirmed that all criteria for the next IMF review have been met, with a board meeting expected by December 2025 to approve a $1.2 billion disbursement.
The SBP expects the current account deficit to remain within the 0–1% of GDP range, with remittances projected to exceed $41 billion in FY26.
However, the central bank cautioned that inflation may exceed the upper bound of its target range for a few months in the second half of FY26, before easing in FY27. Import levels remain manageable, but any sharp rise in oil prices could pose risks.
The SBP’s active dollar buying and prudent monetary policy are seen as key steps to support economic stability and build confidence in Pakistan’s financial markets.
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The post SBP Buys Over $20 Billion in 3 Years to Support Foreign Exchange Stability appeared first on ProPakistani.