Sbp Reduces Dollar Purchases Amid Economic Volatility In Pakistan

As of February 26, 2026, the State Bank of Pakistan (SBP) has reported a significant decline in dollar purchases, with the central bank buying only $620 million in November 2025, down from $1.03 billion in October. This brings total purchases from December 2024 to November 2025 to $6.4 billion, as the SBP aims to build foreign exchange reserves and manage external debt repayments. The SBP's foreign exchange reserves stood at $16.2 billion as of February 13, 2026, with expectations to rise to $18 billion by June 2026, potentially covering nearly three months of imports. The recent current account surplus of $121 million in January, driven by strong remittances and reduced imports, supports this outlook, although the SBP anticipates a deficit of $1.07 billion for the first seven months of FY26, contrasting with a surplus of $564 million during the same period last year.