Pakistan, June 26 -- The State Bank of Pakistan's (SBP) foreign exchange reserves dropped sharply by $2.66 billion, reaching $9.06 billion as of June 20, 2025. This marks the biggest weekly decline in over three years, driven mainly by external debt repayments, including commercial loans.

The last time such a steep fall occurred was in March 2022, when reserves fell by $2.9 billion. This latest decline pushes SBP reserves to an 11-month low, adding pressure to Pakistan's external position. Overall, the country's total liquid reserves stand at $14.39 billion, with commercial banks holding $5.33 billion.

The SBP clarified that the drop was due to scheduled repayment of foreign commercial borrowing by the Government of Pakistan. However, t...