Islamabad: Pakistan has started work on a new plan to lift foreign exchange reserves as the government looks for ways to manage external repayments and stabilise the economy.
Officials at the Ministry of Finance said options are being reviewed after payments linked to Eurobonds and dues to the United Arab Emirates, with the aim of maintaining reserve levels and easing financial pressure.
Pakistan has approached Saudi Arabia for additional support, including a possible fresh deposit, while talks are also underway to expand deferred oil payment facilities to reduce short-term outflows.
Focus on funding and investment
Alongside external support, the government is exploring investment opportunities in sectors such as solar energy, textiles, tourism, leather, pharmaceuticals and minerals to strengthen inflows.
Proposals under discussion include extending repayment timelines for oil imports and securing a broader financial package from Saudi Arabia, which could reach up to $5 billion, though no agreement has been finalised.
Targets for reserves growth
Authorities are aiming to raise foreign exchange reserves to $18 billion by June and $20 billion by December. The State Bank is also expected to support reserves through dollar purchases from the open market.
Officials said around $24 billion has been added to reserves over the past three years through similar interventions.
The measures are part of ongoing efforts to stabilise Pakistan’s external account and support economic recovery.
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