Pakistan’s total liquid foreign exchange reserves increased by $24 million during the week ended August 7, 2026, reaching $22.498 billion compared with $22.475 billion recorded on July 31, according to the latest weekly data released by the State Bank of Pakistan (SBP). The increase reflects a modest improvement in the country’s overall foreign exchange position, with reserves held by both the central bank and commercial banks recording gains during the week. The latest figures provide an update on Pakistan’s external liquidity position as the country continues to focus on strengthening foreign exchange reserves and maintaining greater stability in its external accounts.
Foreign exchange reserves held by the State Bank of Pakistan increased by $14 million during the week under review, rising to $17.057 billion from $17.043 billion recorded on July 31. The central bank’s reserves remain the largest component of Pakistan’s total liquid foreign exchange reserves. The weekly increase represents a 0.08% rise in SBP held reserves. The movement comes as the central bank continues to monitor and manage the country’s external position, with the level of official reserves remaining a key indicator of Pakistan’s ability to meet external financial requirements and support confidence in the foreign exchange market.
Net foreign reserves held by commercial banks also increased during the week, contributing to the overall rise in the country’s reserves. Commercial bank reserves rose by approximately $10 million to $5.441 billion as of August 7, compared with $5.432 billion a week earlier. The increase in commercial bank holdings, together with the $14 million rise in SBP reserves, resulted in the $24 million increase in Pakistan’s total liquid foreign exchange reserves during the reported period. The combined figures show that both components of the country’s reserve position recorded positive movement over the week.
The latest data places Pakistan’s total liquid foreign exchange reserves at $22.498 billion, with $17.057 billion held by the State Bank of Pakistan and $5.441 billion maintained by commercial banks. The figures are closely monitored by financial institutions, investors and businesses because foreign exchange reserves provide an important measure of the country’s external liquidity. Changes in the reserve position can also influence perceptions of Pakistan’s ability to manage external payment requirements and maintain stability in its foreign exchange position. The latest weekly increase therefore represents a further improvement in the country’s reserve holdings, although the change itself remains relatively modest in relation to the overall stock of reserves.
The State Bank of Pakistan has set a target of $20.20 billion for its foreign exchange reserves by the end of December 2026. The target relates to reserves held by the central bank rather than the country’s combined total liquid reserves. With SBP reserves standing at $17.057 billion as of August 7, the central bank will need to increase its holdings further to reach the year-end target. The target reflects the broader policy objective of strengthening Pakistan’s external position and building a larger reserve buffer as the economy moves through the remainder of the year.
The increase in reserves also comes against the backdrop of Pakistan’s broader efforts to improve external sector stability. Foreign exchange reserves are influenced by a range of factors, including foreign currency inflows, external payments, remittances, trade activity and other movements in the balance of payments. Maintaining a stronger reserve position can provide additional capacity to manage external obligations and periods of pressure in the foreign exchange market. For Pakistan, building reserves remains an important part of efforts to strengthen macroeconomic stability and reduce vulnerability to external financing pressures.
The latest weekly figures show that the reserve position continued to move upward in early August, with total liquid foreign exchange reserves increasing from $22.475 billion to $22.498 billion. SBP reserves rose by $14 million, while commercial bank reserves increased by around $10 million. Although the weekly gains were limited, the figures indicate that the country’s overall foreign exchange holdings remained on an upward trajectory during the period under review.
With the State Bank of Pakistan targeting $20.20 billion in reserves by the end of December 2026, developments in the coming months will remain important for the country’s external financial position. The latest $17.057 billion level represents the current position of SBP held reserves, while the combined reserves of the central bank and commercial banks stand at $22.498 billion. Continued growth in foreign exchange holdings would provide a stronger reserve cushion and support Pakistan’s broader objective of maintaining external and financial stability through the remainder of 2026.
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