Foreign exchange reserves held by the State Bank of Pakistan (SBP) are expected to hit a new high by the end of the current calendar year.
According to Topline Securities, SBP is expected to witness another milestone of touching an all-time high forex reserves of over $20.2 billion by December 2026.
This level will be sufficient to cover 3x of monthly imports.
The brokerage house said this reserve forecast does not include any issuance of Panda bonds or Eurobonds. Any issuance of this nature will be a further upside to FX reserves targets.
Meanwhile, the current account deficit is likely to remain in the lower half of 0-1 percent of GDP. The central bank expects imports to grow by 8 percent during FY26 and exports to decline by 6 percent during the same year.
