The State Bank of Pakistan (SBP) reported a modest rise in its foreign exchange reserves for the week ending September 12, 2025, signaling cautious improvement in the country’s external position. According to the central bank, reserves increased by $21 million, bringing the total to $14.36 billion, compared to $14.34 billion recorded a week earlier.
SBP data further revealed that Pakistan’s total liquid foreign exchange reserves stood at $19.73 billion during the period under review. Out of this, commercial banks collectively held net reserves of $5.38 billion, while the remaining portion was managed by the central bank.
Though the weekly gain was relatively small, economists note that any positive movement in reserves is significant for Pakistan, given the country’s persistent external financing needs and reliance on international support. Foreign exchange reserves are a key indicator of a country’s ability to meet its external debt obligations, finance imports, and maintain currency stability in times of global market volatility.
The latest uptick comes at a time when Pakistan continues to navigate external challenges, including fluctuating oil prices, global monetary tightening, and regional trade pressures. Analysts suggest that the improvement may reflect steady inflows from exports and remittances, along with prudent management of external debt repayments by the central bank. However, they caution that the reserves position remains vulnerable and requires consistent support from structural reforms, investment inflows, and greater export competitiveness.
For policymakers, maintaining and gradually expanding foreign exchange reserves remains a top priority. A strong reserves position not only stabilizes the Pakistani rupee but also strengthens investor confidence in the country’s economic outlook. The International Monetary Fund (IMF) and other multilateral lenders closely monitor reserves as part of their ongoing assessments of Pakistan’s financial stability.
Market observers highlight that the marginal increase of $21 million underscores both progress and ongoing fragility. While it reflects disciplined foreign exchange management, it also shows that reserves are not expanding at a pace needed to provide long-term buffers against global shocks. Sustained improvement will depend on Pakistan’s ability to boost exports, diversify remittance channels, and attract foreign direct investment, alongside careful debt restructuring.
Despite these challenges, the SBP has continued to emphasize stability in external accounts as part of its broader monetary and fiscal coordination. Regular reporting of reserves data is viewed as a transparency measure aimed at maintaining credibility in domestic and international markets.
As the global economic environment evolves, Pakistan’s foreign exchange position will remain a critical barometer of resilience. Economists argue that small but steady gains like the latest increase in SBP reserves are steps in the right direction, though much work lies ahead in achieving sustainable external balance.
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