Pakistan foreign exchange reserves reach $21.4 billion

Pakistan's foreign exchange reserves have reached a record level of $21.4 billion, which is sufficient to cover approximately three months of imports, according to Finance Minister Muhammad Aurangzeb.

Speaking at a microfinance conference in Karachi, Aurangzeb emphasized the need to expand financial access for small businesses and farmers. He suggested that credit systems should be based on cash flow rather than traditional collateral, utilizing digital credit scoring and alternative data to increase inclusion.

The government has increased the export refinancing limit from 100 billion to 150 billion rupees, with 20 percent of this allocated specifically to small and medium-sized enterprises. Aurangzeb projected that the country's economic growth rate will exceed 4 percent in the current fiscal year.

To maintain economic stability, the government intends to continue structural reforms in taxation, energy, state-owned enterprises, privatization, and public finance. The Minister noted that Pakistan has made significant progress in economic stability over the last two and a half years, citing three improvements in the country's sovereign credit rating since April 2025.