The State Bank of Pakistan (SBP) has reported a modest rise in the country’s foreign exchange reserves, marking a positive development for economic observers tracking external account stability. The central bank’s weekly data shows that total reserves increased by $57 million in the week ending September 19, 2025, bringing the overall figure to $19.793 billion. This steady improvement, though limited in scale, has been welcomed as a sign of resilience amid ongoing economic adjustments.
According to the SBP, official reserves held by the central bank registered an increase of $22 million, standing at $14.379 billion compared with $14.357 billion recorded in the previous week. At the same time, commercial banks also played a role in strengthening the country’s financial buffer, with their combined holdings climbing by $35 million to $5.414 billion from $5.379 billion a week earlier.
Analysts note that while the week’s increase may appear marginal, it reflects a broader trend of better foreign inflows coupled with reduced outflows. This balance is crucial for a country like Pakistan, which remains highly sensitive to external shocks and requires steady inflows to manage debt servicing, imports, and exchange rate pressures.
The improvement in reserves is expected to carry greater significance in the weeks ahead. Pakistan is anticipating inflows of nearly $1 billion from the International Monetary Fund (IMF) under the Extended Fund Facility (EFF), provided the ongoing review concludes successfully. If realized, the additional financing will further bolster the central bank’s position and enhance confidence in the economy’s ability to navigate external liabilities.
Economists highlight that a stronger reserve position not only supports Pakistan in meeting its external debt obligations but also plays a decisive role in stabilizing the value of the rupee against major global currencies. Currency stability, in turn, impacts inflation, trade competitiveness, and investor sentiment, making reserve management a critical element of broader economic policy.
Market participants and financial experts are closely watching these movements, as reserves are often regarded as a barometer of economic health. Incremental gains such as the $57 million increase may not immediately transform the external landscape, but they send positive signals at a time when confidence and stability are highly valued.
The SBP has emphasized that its policies remain focused on maintaining external stability through prudent management of inflows and outflows. The central bank continues to coordinate with the government to ensure that inflows from multilateral institutions, remittances, and exports can sustain the economy’s requirements while gradually strengthening the country’s financial position.
While challenges such as high import costs, global oil price volatility, and debt repayments persist, the recent uptick in reserves provides a measure of reassurance. Observers believe that sustained improvement over the coming weeks, particularly with IMF disbursements and other external support, could set the stage for more consistent stability in Pakistan’s external accounts.
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