Pakistan’s foreign exchange reserves registered a modest uptick during the week ending August 15, 2025, with the State Bank of Pakistan (SBP) reporting an increase of $13 million. This pushed SBP-held reserves to $14.26 billion, marking a 0.09 percent week-on-week improvement. The rise reflects continued stability in the country’s external position, supported by inflows and measured demand for foreign currency.
According to data released by the central bank on Thursday, the country’s total liquid reserves climbed to $19.57 billion, up by $74.1 million or 0.38 percent on a weekly basis. Commercial banks also contributed significantly to the increase, with their reserves growing by $61.1 million to reach $5.31 billion, a 1.16 percent rise compared to the previous week.
The latest figures highlight a positive trajectory for Pakistan’s foreign exchange reserves throughout the current fiscal year. Since the beginning of FY2025, SBP’s reserves have expanded by $5.19 billion, reflecting a strong 57.28 percent increase. Similarly, on a calendar-year basis, SBP reserves have risen by $2.55 billion, showing a 21.74 percent growth compared to the start of 2025.
This consistent upward trend underscores improved external account management, enhanced remittance inflows, and controlled import demand under tighter fiscal and monetary measures. Analysts note that the central bank’s ability to sustain reserves above the $14 billion mark is particularly significant, given Pakistan’s upcoming debt repayments and the need to maintain stability in the foreign exchange market.
A breakdown of the weekly position reveals that the SBP’s holdings rose from $14.24 billion on August 8 to $14.26 billion on August 15, while commercial banks’ net reserves increased from $5.25 billion to $5.31 billion over the same period. The overall rise in liquid reserves from $19.49 billion to $19.57 billion reflects a steady but cautious buildup of external buffers.
Improving reserve levels provide much-needed breathing space for policymakers as they navigate a challenging economic environment marked by external financing requirements, fiscal adjustments, and global market volatility. For businesses and investors, sustained reserve growth sends a signal of greater financial stability, which in turn helps improve confidence in Pakistan’s macroeconomic outlook.
At the same time, experts caution that while the short-term outlook for reserves remains encouraging, longer-term sustainability will depend on maintaining balanced trade flows, securing steady inflows from remittances and multilateral lenders, and ensuring prudent debt management. Any external shocks, such as fluctuations in global oil prices or delays in expected inflows, could test the resilience of current levels.
For now, however, the increase in SBP-held reserves to more than $14 billion marks a continuation of the positive momentum seen in recent months. With the central bank maintaining a careful balance between currency stability and external liquidity, the outlook remains cautiously optimistic for Pakistan’s reserve position going forward.