State Bank of Pakistan’s Dollar Purchases Exceed IMF Loan Package in FY26
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The State Bank of Pakistan (SBP) purchased $8.257 billion in U.S. dollars between June 2024 and June 2025, surpassing the value of Pakistan’s $3 billion three-year loan agreement with the International Monetary Fund (IMF). This considerable dollar accumulation reflects the SBP’s efforts to manage external debt and maintain a stable current account, though purchasing patterns have shifted compared to the previous fiscal year.
Shifting Purchase Patterns: FY26 vs. FY25
In the first quarter of Fiscal Year 2026 (Q1 FY26), the SBP purchased $1.469 billion, a decrease compared to the $2.237 billion acquired during Q1 FY25. However, September FY26 witnessed a notable surge, with the SBP purchasing $1.023 billion – the highest monthly amount during the current fiscal year. This indicates a fluctuating demand for dollars and a reactive approach by the SBP to market conditions.
For context,the SBP’s dollar buying activity was considerably higher during the first half of FY25. Specifically, the SBP purchased $946 million in September 2024, $1.026 billion in October 2024, and $1.151 billion in November 2024.These substantial purchases were strategically implemented to alleviate pressure stemming from external debt servicing, contributing to a current account surplus.
The Role of IMF Loans and External Debt
While the SBP’s dollar purchases exceeded the value of the recent IMF loan, the IMF continues to play a crucial role in Pakistan’s economic stability. IMF loans frequently enough come with structural adjustment conditions, which can be politically sensitive, but provide vital financial support to the government. These loans are intended to bolster foreign exchange reserves and facilitate lasting economic growth.
The SBP’s interventions in the foreign exchange market are directly linked to managing pakistan’s external debt obligations. By purchasing dollars,the SBP aims to ensure sufficient reserves are available to meet these obligations and prevent a balance of payments crisis.
Looking Ahead: October-December FY26 Data Pending
The SBP has not yet released data on its dollar purchases for October, November, and December of FY26. This information will be crucial for a complete understanding of the SBP’s foreign exchange operations during the fiscal year and its overall strategy for managing Pakistan’s economic stability.
