Pakistan’s foreign currency deposits increased by $31.31 million in September 2026, reaching $6.966 billion compared with $6.935 billion in August, according to the latest data released by the State Bank of Pakistan (SBP). The monthly increase of 0.45% indicates a modest recovery in foreign currency balances held within the banking system. However, the total remained below the level recorded a year earlier, reflecting a decline in overall foreign currency deposits on an annual basis.
The SBP data showed that total foreign currency deposits fell by $89.66 million, or 1.27%, compared with $7.056 billion in September 2025. The figures indicate that the monthly improvement has not fully reversed the year-on-year decline. Foreign currency deposits are an important part of Pakistan’s banking system because they provide dollar-denominated balances that can support trade-related financing and other foreign currency requirements. Their movement also offers insight into changes in the holdings of resident and non-resident account holders.
Foreign currency deposits held by residents increased to $5.920 billion in September, up from $5.865 billion in August. This represented a monthly rise of $54.93 million, or 0.94%. Despite the increase during the month, resident deposits remained lower than the corresponding period last year. Compared with $6.132 billion in September 2025, resident foreign currency deposits declined by $211.88 million, or 3.46%. This annual contraction was larger than the increase recorded in September, contributing to the overall year-on-year reduction in foreign currency deposits.
The composition of resident deposits showed that demand deposits accounted for $2.065 billion, while savings deposits stood at $1.703 billion. Time deposits amounted to $2.151 billion. These categories reflect different ways customers hold foreign currency in banks, ranging from funds available on demand to balances maintained in savings and time deposit accounts. The figures provide a breakdown of resident holdings but do not, by themselves, establish the reasons behind the monthly or annual changes.
Non-resident foreign currency deposits moved in the opposite direction on a monthly basis, falling by $23.62 million, or 2.21%, to $1.046 billion in September 2026. The balance had stood at $1.070 billion in August. On a year-on-year basis, however, non-resident deposits increased by $122.22 million, or 13.23%, compared with $923.69 million in September 2025. This growth partly offset the decline in resident deposits when comparing total foreign currency balances with the previous year.
The breakdown of non-resident deposits showed $636.95 million in demand deposits, $223.73 million in savings deposits and $185.23 million in time deposits. Demand deposits represented the largest portion of the reported non-resident balances, followed by savings and time deposits. Taken together, the resident and non-resident figures show different trends across customer groups, with resident balances declining annually while non-resident holdings recorded growth over the same period.
The data also detailed the use and placement of foreign currency funds within Pakistan’s financial system. During September, $827.94 million was utilised for pre-shipment financing, while $169.32 million was allocated to post-shipment financing. A further $1.143 billion was used for import financing. These facilities support different stages of international trade, including financing activities before goods are shipped, funding after shipment and payments associated with imports. Such financing needs are relevant to Pakistan’s external account because businesses require foreign currency to purchase goods and meet trade-related obligations.
In addition, $1.350 billion was placed with the SBP and Pakistani banks. Of this amount, $396.62 million was held under Cash Reserve Requirement (CRR) requirements, while $724.39 million was placed under Special Cash Reserve Requirement (SCRR) requirements. The remaining placements included $19.26 million with banks within Pakistan and $209.66 million with banks outside the country. Separately, $297.08 million was held as balances abroad, while $231.13 million remained as cash in hand.
The September figures present a mixed picture of Pakistan’s foreign currency deposit position. The overall balance increased slightly from August, supported by higher resident deposits, but remained below the September 2025 level. Growth in non-resident deposits over the year provided a partial offset to the contraction in resident holdings. The distribution of funds across trade financing, reserve requirements, bank placements and overseas balances also highlights the range of purposes served by foreign currency deposits within the banking system.
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