Pakistan’s foreign exchange reserves showed little movement this week, reflecting a period of relative stability in the country’s external financial position. According to the latest data released by the State Bank of Pakistan (SBP) on Thursday, total liquid foreign exchange reserves stood at $19.796 billion for the week ending September 26, 2025. This marks a marginal increase compared to the previous week’s level of $19.793 billion, indicating that the country’s external accounts remain broadly balanced.
Breaking down the composition of these reserves, the SBP’s own holdings saw a slight rise of $21 million, bringing official reserves to $14.40 billion compared to $14.379 billion the week before. Conversely, reserves held by commercial banks declined by $18 million, closing the week at $5.396 billion from $5.414 billion previously. These movements suggest limited volatility in the forex position, a reflection of stable demand for foreign currency in the inter-bank market and effective liquidity management by the central bank.
Economic analysts highlight that this consistency in reserves demonstrates Pakistan’s improving external sector resilience, even as the country continues to navigate fiscal and monetary challenges. With the International Monetary Fund (IMF) currently conducting the second review of the $7 billion Extended Fund Facility (EFF), policymakers are optimistic about receiving an additional inflow of approximately $1 billion upon successful completion of the review. This anticipated disbursement is expected to further strengthen Pakistan’s reserve buffers, supporting the rupee and enhancing market confidence.
The SBP has maintained a cautious approach in managing external liquidity, prioritizing stability over short-term gains. Officials have noted that keeping reserves near the $20 billion mark provides an important safeguard for meeting import payments and foreign debt obligations, particularly in an environment of global uncertainty and fluctuating commodity prices. Stable reserves are also key to maintaining investor confidence and controlling exchange rate volatility, both of which are essential for macroeconomic recovery.
Experts believe that the central bank’s ongoing focus on improving the current account balance, along with prudent fiscal management and the gradual recovery of exports, will help sustain the stability seen in the latest forex figures. Moreover, remittance inflows from overseas Pakistanis—consistently a major source of foreign exchange—continue to provide steady support to the country’s external accounts.
The next few weeks will be crucial for Pakistan’s economic outlook, as the outcome of IMF talks and potential inflows from friendly nations could determine the near-term direction of the reserves. A favorable review would not only strengthen external liquidity but also reinforce market sentiment, signaling that Pakistan remains on track to meet its financial commitments under international agreements.
While the global financial landscape remains uncertain—shaped by volatile oil prices, monetary tightening in major economies, and shifting trade dynamics—Pakistan’s ability to maintain reserve stability is a positive development. The SBP’s careful management of foreign currency reserves has helped shield the economy from excessive external shocks and provided a measure of confidence to investors and market participants alike.
For now, the steady reserve position at $19.80 billion underscores cautious optimism in the country’s financial trajectory. Continued policy discipline, external support, and structural reforms remain key to sustaining this momentum as Pakistan seeks to stabilize its economy and enhance long-term resilience.
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