Pakistan’s foreign exchange reserves recorded a marginal increase in the week ended January 2, reflecting routine inflows and repayments, according to data released by the State Bank of Pakistan (SBP) on Thursday. The uptick comes amid continued efforts by economic managers to maintain external sector stability following recent improvements in macroeconomic indicators.
Data issued by the central bank showed that reserves held by the SBP rose by $141 million during the week, reaching $16.056 billion. The SBP attributed the increase to normal financial inflows and external repayments received during the period, without specifying any extraordinary transactions or one-off receipts.
In addition to the central bank’s holdings, net foreign exchange reserves maintained by commercial banks stood at $5.137 billion as of January 2. Combined, the country’s total liquid foreign exchange reserves amounted to $21.192 billion at the end of the reporting week, marking a modest but positive movement in overall reserve levels.
Foreign exchange reserves are closely watched as a key indicator of a country’s ability to meet external payment obligations, including imports, debt servicing, and other foreign liabilities. Pakistan’s reserve position has remained under scrutiny over the past two years due to balance-of-payments pressures, tight external financing conditions, and obligations linked to multilateral and bilateral lenders.
The latest increase, though relatively small, adds to a recent trend of gradual stabilisation following disbursements from international partners and improved current account dynamics. Analysts note that maintaining reserves above critical thresholds is important for sustaining market confidence and supporting exchange rate stability, particularly in an environment of global financial uncertainty.
The SBP has consistently highlighted the role of prudent monetary management and coordination with fiscal authorities in supporting external sector resilience. In recent months, improvements in remittance inflows, a contained current account deficit, and programme-related financing have contributed to easing pressure on reserves, although vulnerabilities remain.
Commercial bank reserves, which form the second component of total liquid reserves, reflect the foreign currency assets held by scheduled banks. While these reserves are not directly controlled by the central bank, they play a role in overall liquidity conditions in the foreign exchange market and can influence short-term market sentiment.
Economists caution that sustained growth in reserves will depend on continued inflows from exports, remittances, foreign direct investment, and external financing, alongside disciplined demand management. They also point to the importance of structural reforms aimed at improving export competitiveness and reducing reliance on short-term external borrowing.
The SBP is expected to continue releasing weekly data on foreign exchange reserves, providing markets and stakeholders with regular updates on the country’s external position. While the latest figures indicate stability rather than a sharp build-up, they suggest that Pakistan’s reserve buffers are holding steady at a time when managing external vulnerabilities remains a central policy priority.
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