Pakistan’s foreign exchange reserves posted a slight uptick in the week ending September 19, 2025, with the State Bank of Pakistan (SBP) reporting a total of $19.79 billion in liquid reserves. The central bank’s latest data shows that its own holdings improved modestly, signaling cautious stability in the country’s external accounts.
According to the SBP, its reserves increased by $22 million during the week, bringing the total to $14.38 billion compared to $14.36 billion in the previous week. Meanwhile, net reserves held by commercial banks stood at $5.41 billion, reflecting no major fluctuations in the private sector’s foreign currency position. This balanced performance highlights the continued resilience of the banking system in managing liquidity despite external financial pressures.
In its weekly statement, the SBP confirmed, “During the week ended on 19-Sep-2025, SBP’s foreign exchange reserves increased by US$22 million to US$14,379.5 million.” While the increase may appear marginal, it carries significance as it represents sustained efforts to stabilize external balances amid a challenging global and domestic economic environment.
The central bank’s reserves remain the backbone of Pakistan’s capacity to meet international payment obligations, including imports and external debt servicing. Analysts note that incremental gains in reserves, even at this scale, provide breathing space to policymakers and add confidence for global lenders monitoring Pakistan’s economic trajectory.
The recent uptick in reserves comes at a time when Pakistan is under close review by the International Monetary Fund (IMF) as part of its $7 billion Extended Fund Facility (EFF). Market participants have kept a close watch on reserve levels, given their direct link to the country’s ability to manage external shocks and adhere to IMF-mandated benchmarks. Positive reserve movement, even if limited, reinforces the government’s narrative of gradually restoring macroeconomic stability.
Commercial banks’ share of $5.41 billion also demonstrates the relative health of the private sector’s foreign exchange holdings. This segment plays a vital role in supporting trade, corporate financing, and individual remittances, which continue to remain one of the most significant sources of foreign currency inflows into the country.
Economists emphasize that Pakistan’s ability to maintain and grow its reserve buffers will depend largely on the inflow of multilateral financing, foreign direct investment, and consistent remittance inflows from overseas Pakistanis. Additionally, sustained export growth and prudent external account management remain critical for reducing vulnerabilities in the months ahead.
Although the weekly increase of $22 million may not appear substantial in scale, it highlights a broader trend of cautious improvement. For investors, businesses, and policymakers, this signals that while the economy is still under strain, steps taken by the SBP and the government are slowly bearing fruit in managing external balances.
The coming weeks are expected to provide more clarity as Pakistan continues discussions with global lenders and implements reforms aimed at ensuring financial stability. With reserves now edging closer to the $20 billion mark, market watchers will remain attentive to whether this momentum can be sustained in the face of domestic and global economic challenges.
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