Pakistan’s foreign exchange reserves witnessed a modest increase at the State Bank of Pakistan (SBP), rising by USD 31.24 million during the week ending October 31, 2025. According to the latest data published by SBP, the country’s reserves held at the central bank reached USD 14.50 billion, marking a 0.22 percent uptick compared to USD 14.47 billion reported the previous week.
However, while SBP reserves edged higher, the net reserves held by commercial banks experienced a decline of USD 55.20 million, falling from USD 5.22 billion to USD 5.16 billion over the same period. This decrease contributed to a slight reduction in the country’s total liquid foreign reserves, which stood at USD 19.66 billion on October 31, 2025, down USD 23.96 million or 0.12 percent from the previous week’s USD 19.68 billion.
The data highlights the nuanced composition of Pakistan’s foreign reserves, which are split between the SBP and commercial banks. While the central bank’s reserves provide a buffer for the country’s external obligations and foreign currency liquidity, commercial banks’ holdings reflect private sector flows, trade settlements, and corporate forex transactions. Analysts note that a modest increase in SBP reserves amid a slight dip in commercial bank holdings suggests active management of forex liquidity and ongoing interventions in the market to stabilize the rupee and maintain adequate foreign currency availability.
SBP’s weekly foreign reserve statements indicate that the central bank remains focused on monitoring inflows and outflows to safeguard macroeconomic stability. The incremental USD 31 million increase at the central bank could be attributed to a combination of foreign currency inflows from remittances, debt repayments, or intervention in the interbank forex market to address supply-demand imbalances.
Despite the small weekly fluctuations, the total liquid reserves remain a critical metric for Pakistan’s economic health, as they underpin the country’s ability to service external debt, finance imports, and support currency stability. With global economic uncertainties, maintaining adequate foreign reserves has become even more significant for emerging economies like Pakistan, which rely on forex stability to attract investment and maintain confidence in the financial system.
Financial experts emphasize that while week-to-week movements may appear minor, sustained reserve management by SBP is vital to cushioning the economy from external shocks. Policymakers are closely monitoring reserves, remittance trends, trade balances, and other macroeconomic indicators to ensure liquidity adequacy and support growth.
Looking ahead, the central bank’s careful management of foreign exchange reserves will remain a key tool in navigating economic challenges, ensuring stability in the forex market, and maintaining investor and market confidence. The ongoing balance between SBP-held reserves and commercial bank net holdings will continue to reflect the overall health and resilience of Pakistan’s external financial position.
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