Foreign currency deposits held in Pakistan increased by $69.39 million during August 2026, reaching $6.935 billion compared with $6.866 billion in the previous month, according to the latest data released by the State Bank of Pakistan. The monthly increase reflects growth in both resident and non-resident foreign currency deposits, although the overall deposit base remained below the level recorded a year earlier. On a year-on-year basis, total foreign currency deposits declined by $69.69 million, or 0.99%, from $7.004 billion recorded in August 2025.
The State Bank data showed that foreign currency deposits held by residents stood at $5.865 billion in August 2026, registering an increase of $13.79 million, or 0.24%, from $5.851 billion in July. Despite the monthly rise, resident foreign currency deposits remained lower than the previous year. Compared with August 2025, resident deposits declined by $242.75 million, or 3.97%, from $6.108 billion. The figures indicate that the monthly improvement in resident deposits was not sufficient to offset the decline recorded on an annual basis.
Non-resident foreign currency deposits recorded a stronger monthly increase during the period under review. These deposits reached $1.070 billion in August 2026, rising by $55.60 million, or 5.48%, from $1.014 billion in July. Unlike resident deposits, the non-resident segment also recorded significant annual growth. Non-resident foreign currency deposits increased by $173.06 million, or 19.30%, compared with $896.48 million in August 2025. The increase in non-resident holdings therefore provided a major contribution to the overall monthly growth in foreign currency deposits.
The composition of resident deposits showed that $2.017 billion was held in demand deposits, while savings deposits accounted for $1.702 billion. A further $2.146 billion was maintained in time deposits. This distribution highlights the different forms in which residents held their foreign currency balances during August. Demand deposits represented funds available for relatively immediate use, while savings and time deposits accounted for the remaining portion of the resident foreign currency deposit base.
For non-residents, demand deposits stood at $643.83 million in August 2026, making them the largest component of the non-resident deposit balance. Savings deposits amounted to $217.38 million, while time deposits stood at $208.33 million. Combined, these balances brought total non-resident foreign currency deposits to $1.070 billion. The annual increase in this segment suggests that non-resident holdings have expanded considerably compared with the same month last year, even as resident foreign currency deposits remained under pressure.
The foreign currency deposits also continued to serve financial requirements linked to Pakistan’s fiscal and external financing needs. During August, $920.78 million was utilized for pre-shipment financing, while $157.59 million was used for post-shipment financing. A further $977.26 million was utilized for import financing. These figures show the role of foreign currency resources in supporting trade-related financing and meeting external payment requirements, particularly for imports and export-related activities.
In addition to financing activities, $1.373 billion of foreign currency deposits was placed with the State Bank of Pakistan and Pakistani banks during the month. Of this amount, $411.91 million was placed under cash reserve requirements, while $698.07 million was maintained under special cash reserve requirements. Another $20.49 million was placed with banks within Pakistan, while $242.45 million was held with banks outside Pakistan.
The remaining foreign currency balances were distributed across overseas holdings and cash positions. During August 2026, $431.98 million was held as balances abroad, while $236.10 million remained as cash in hand. Overall, the August data shows a $69.39 million monthly increase in Pakistan’s foreign currency deposits, driven largely by the rise in non-resident deposits, while the annual comparison continued to show a modest decline in the total deposit base.
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