Pakistan

The State Bank of Pakistan holds foreign exchange reserves that include Chinese Yuan (~$5.8B), partly sourced through bilateral currency-swap arrangements with China. Pakistan's reserves have been under pressure in recent years, making external financial support and careful reserve management critical for economic stability and the ability to service external obligations.

The State Bank of Pakistan has accumulated yuan reserves through formal currency-swap facilities established between the two central banks, reflecting Pakistan's strategic partnership with China and the importance of bilateral financial cooperation for external resilience. The bank manages substantial external financing constraints, with reserves serving as the primary cushion against balance-of-payments pressure and sudden reversals in capital flows. Pakistan's yuan reserves represent both financial assets and strategic instruments, as Chinese financial support through bilateral arrangements has repeatedly helped stabilize the rupee and fund infrastructure projects under the China-Pakistan Economic Corridor. Reserve adequacy remains a central concern for macroeconomic stability given structural external deficits and reliance on commodity imports.

Pakistan's yuan holdings underscore the centrality of bilateral currency mechanisms in supporting the country's external stability. The State Bank's reserve management strategy reflects a financing landscape in which Chinese swap lines and bilateral arrangements complement traditional multilateral support. These reserves facilitate rupee stability, support the government's ability to manage external debt, and provide exposure to financial cooperation mechanisms that have proven important during repeated balance-of-payments pressures, demonstrating how developing economies increasingly combine support from institutions and partners with reserves in currencies beyond the US Dollar.