SBP Dollar Purchases Hits Lowest Level In 16 Months

In practice, the State Bank of Pakistan reduced its purchases from the interbank foreign exchange market to $154 million in May, the lowest monthly amount since January 2025, according to central bank data.

Key points

• Remittances from overseas Pakistanis exceeded $41 billion in fiscal year 2026 and are projected to reach $44 billion in fiscal year 2027.
• Pakistan's current account deficit fell to $328 million in July, down 60 percent from the previous month and 38 percent from a year earlier.
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• The central bank's reserves are projected to exceed $21 billion during fiscal year 2026.
• Market analysts attributed the sharp decline in May purchases to stronger demand for dollars in the open market from individuals traveling to Saudi Arabia for Hajj.

While its total purchases during the first 11 months of fiscal year 2026 reached $7.3 billion, slightly higher than $7.2 billion during the same period a year earlier, the SBP purchased $635 million from the market in April. Bank Makramah Completes Rs. 12 Billion Sale Of Cullinan Tower.

Market analysts attributed the sharp decline in May purchases to stronger demand for dollars in the open market from individuals traveling to Saudi Arabia for Hajj. Tighter dollar availability in the market prompted the SBP to reduce its purchases to avoid putting extra pressure on the rupee, he stated.

For context, the central bank generally purchases excess dollars from the interbank market to build its foreign exchange reserves and backing its external debt servicing requirements. Its foreign exchange reserves stood at $17.2 billion at the end of May.

While the SBP has continued to strengthen its reserves through foreign exchange market interventions, higher remittances and a relatively narrow current account deficit have backed the country's external position. The central bank's reserves are projected to exceed $21 billion during fiscal year 2026.

Pakistan's current account deficit fell to $328 million in July, down 60 percent from the previous month and 38 percent from a year earlier. The SBP expects the current account deficit to remain between zero and 1 percent of GDP in fiscal year 2027.

Remittances from overseas Pakistanis exceeded $41 billion in fiscal year 2026 and are projected to reach $44 billion in fiscal year 2027. The Finance Ministry remarked external sector conditions are anticipated to remain broadly supportive, supported by stronger exports, particularly textiles, sustained remittance inflows and continued export facilitation measures. Stay Connected with ProPakistani.

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For now, SBP Dollar Purchases Hits Lowest Level In 16 Months remains the part of the story worth watching, and further updates are likely as more details are confirmed.