Pakistan’s foreign exchange reserves held by the State Bank of Pakistan (SBP) recorded a modest increase of $16 million, reaching $16.09 billion in the week ending January 16, 2026, according to official data released on Thursday. The rise marks the second consecutive weekly improvement in the central bank’s reserves, signalling gradual stability in the country’s external position.
According to figures shared by the SBP, total liquid foreign reserves of the country, including those held by commercial banks, stood at $21.26 billion during the reported week. Net foreign exchange reserves held by commercial banks were recorded at $5.17 billion, reflecting relatively stable positions across the banking sector.
In its weekly statement, the central bank confirmed the increase, stating that during the week ended January 16, SBP’s foreign exchange reserves rose by $16 million to $16,087.7 million. While the increase was modest, it continues a recent trend of incremental gains after periods of volatility in Pakistan’s external accounts.
A breakdown of the data shows that SBP-held reserves stood at approximately $16.07 billion, while commercial banks held around $5.18 billion in net foreign reserves. The figures indicate a steady but slow accumulation of reserves, supported by controlled imports, stable inflows and cautious external account management.
Market observers note that even small weekly increases carry significance at a time when Pakistan remains focused on strengthening its external buffers. Foreign exchange reserves are a key indicator of a country’s ability to meet external obligations, manage currency volatility and maintain confidence among investors and international lenders.
The recent improvement comes amid efforts by the authorities to stabilise the rupee and improve the balance of payments position. Over the past few months, Pakistan has benefited from tighter monetary conditions, restrained demand for imports and improved inflows through official channels, which have helped prevent sharp drawdowns in reserves.
Economists point out that while the current level of reserves remains below what would be considered comfortable for a large import-dependent economy, the consistency of recent gains is encouraging. Sustained reserve accumulation is seen as critical for maintaining currency stability and reducing vulnerability to external shocks.
The data also reflects relative stability in commercial banks’ foreign exchange holdings, suggesting that pressure on the interbank market has eased compared to earlier periods. Stable reserves at commercial banks help support routine trade financing and remittance processing, which are essential for day-to-day economic activity.
Analysts caution, however, that Pakistan’s reserve position remains sensitive to global commodity prices, external debt repayments and capital flows. Any sharp rise in oil prices or delays in external financing could quickly reverse recent gains if not managed carefully.
The SBP has repeatedly emphasised the importance of maintaining discipline in foreign exchange management and ensuring that inflows and outflows remain aligned with broader macroeconomic objectives. Strengthening reserves remains a core priority under ongoing economic reform efforts.
Going forward, further improvement in reserves is expected to depend on continued support from multilateral lenders, steady remittance inflows and growth in exports. Policy continuity and external financing arrangements will play a crucial role in determining whether Pakistan can build a more resilient reserve buffer over the coming months.
For now, the latest data suggests a cautiously positive trend, with Pakistan’s foreign exchange reserves showing signs of stability and gradual recovery, offering some relief to markets closely tracking the country’s external health.
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