Pakistan’s foreign exchange reserves continued their upward trajectory, with the foreign currency reserves held by the State Bank of Pakistan (SBP) increasing by $20.7 million to reach $14.44 billion during the week ending October 10, 2025. This represents a 0.14% week-on-week growth, according to data released by the central bank on Thursday.
The country’s total liquid foreign reserves, which include those held by the SBP and commercial banks, rose marginally by $0.1 million to stand at $19.81 billion during the same period. Although the overall increase appears modest, it reflects consistent efforts to stabilize external balances and strengthen the foreign exchange buffer.
Meanwhile, reserves held by commercial banks experienced a slight decline, falling by $20.6 million or 0.38% week-on-week to $5.37 billion. This shift highlights a rebalancing within the financial system as inflows consolidate at the central bank level.
On a broader scale, SBP reserves have shown impressive growth over the fiscal year, rising by $5.38 billion or 59.31%. During the current calendar year alone, the increase has been $2.73 billion or 23.31%. This expansion underscores the gradual improvement in Pakistan’s external account, supported by financial inflows, foreign investment activity, and fiscal management measures.
The latest figures also reflect a period of relative stability in the exchange rate and improved market sentiment. Analysts believe this positive momentum can provide the government and monetary authorities with more room to maneuver as they pursue economic reforms and external financing strategies.
A summary of the reserves shows that on October 10, 2025, the SBP’s foreign reserves stood at $14,440.8 million compared to $14,420.1 million on October 3, indicating a $20.7 million increase. Net foreign reserves held by banks dropped from $5,390.3 million to $5,369.7 million, while total liquid foreign reserves increased slightly from $19,810.4 million to $19,810.5 million.
The strengthening of reserves comes at a crucial time as the country continues to navigate a challenging global economic environment. A stable reserve position is considered vital for meeting external obligations, maintaining investor confidence, and supporting the local currency.
Looking ahead, sustaining this upward trend will depend on factors including export performance, remittance inflows, foreign investment, and fiscal discipline. Economists also emphasize that robust reserves can help buffer against external shocks and provide a cushion for economic policy measures.
Follow the PakBanker Whatsapp Channel for updated across Pakistan’s banking ecosystem.