The State Bank of Pakistan (SBP) has announced that the remuneration rate on Special Cash Reserve Accounts (SCRA) maintained with the central bank will remain at 3.27 percent for the month of September 2025. The decision reflects SBP’s continued policy of managing foreign currency deposits and reserves under established regulatory frameworks.
According to the central bank, the rate applies specifically to deposits raised under FE-Circular 25 of 1998. These deposits form part of the regulatory structure designed to provide banks with avenues to manage foreign currency liquidity, while also enabling the central bank to monitor and control flows in the external account.
The Special Cash Reserve Account operates as a regulatory mechanism that requires banks to maintain certain balances with the SBP against their foreign currency deposit liabilities. These reserves are remunerated by the central bank on a daily product basis, with the applicable rates notified at the close of each month. For September 2025, SBP has retained the rate at 3.27 percent, aligning it with recent market conditions and external account requirements.
This monthly notification serves multiple purposes in Pakistan’s financial system. By remunerating the balances, SBP incentivizes compliance among commercial banks while ensuring that foreign exchange reserves remain adequately backed. At the same time, the rate-setting mechanism reflects broader monetary policy dynamics, where central bank instruments are used not only to regulate liquidity but also to maintain stability in the foreign exchange regime.
Analysts note that the continuity of the 3.27 percent rate comes at a time when global financial markets are adjusting to shifting interest rate environments. For Pakistan, where foreign exchange management remains a critical policy priority, the SCRA plays a pivotal role in balancing liquidity needs of banks with the regulatory objectives of the central bank. Maintaining this rate signals SBP’s cautious approach, providing predictability for banks managing their foreign exchange positions.
For commercial banks, the remuneration serves as a modest return on mandatory reserves, slightly offsetting the opportunity costs of maintaining such balances. More importantly, it strengthens their liquidity planning frameworks, particularly in an environment where compliance with international standards on reserve adequacy and transparency is increasingly emphasized.
The SBP’s consistent use of FE-25 regulations underscores the importance of foreign currency management in Pakistan’s overall financial stability. These accounts act as a safeguard against volatility in foreign currency markets, offering the central bank a buffer while ensuring that commercial banks remain disciplined in their handling of foreign exchange deposits.
As Pakistan continues to navigate challenges related to its external account, such measures highlight SBP’s dual focus on regulation and stability. By keeping the Special Cash Reserve Account remuneration rate steady, the central bank is signaling a steady hand in managing foreign exchange reserves while also ensuring that market participants have clarity on returns associated with these accounts.
This policy continuity further reinforces the SBP’s broader strategy of maintaining confidence in the banking system, supporting monetary stability, and aligning reserve management with both domestic and international economic realities.
Follow the PakBanker Whatsapp Channel for updated across Pakistan’s banking ecosystem.