The State Bank of Pakistan (SBP) reported a modest increase in its foreign exchange reserves during the week ending September 26, 2025. According to official data released on Thursday, the central bank’s reserves rose by $21 million, reaching $14,400.4 million. This incremental growth reflects ongoing efforts to stabilize the country’s external financial position amid fluctuating global economic conditions.
Total liquid foreign reserves, which include SBP holdings and commercial bank reserves, were recorded at $19,800 million. Net reserves held by commercial banks stood at $5,400 million, highlighting the combined capacity of Pakistan’s financial institutions to manage foreign currency liquidity. Analysts note that even small weekly adjustments in reserves are significant indicators of the overall health of Pakistan’s foreign currency position, particularly given ongoing pressures from import bills and external debt obligations.
In comparison, SBP’s reserves were at $14,379.5 million during the previous week. The increase of $21 million, though relatively modest, demonstrates the central bank’s ongoing interventions in currency markets and foreign exchange management. Such interventions often include purchases from the interbank market, monitoring inflows from remittances, and managing foreign debt repayments.
Financial experts emphasize that maintaining adequate foreign exchange reserves is critical for Pakistan’s macroeconomic stability. Reserves serve as a buffer against currency volatility, enabling the central bank to support the Pakistani rupee and meet international payment obligations. Additionally, they play a pivotal role in boosting investor confidence, signaling that the country has sufficient liquidity to honor imports, debt servicing, and other external commitments.
During fiscal year 2024-25, the SBP’s dollar purchases from the interbank market approached $8 billion, reflecting active engagement to maintain exchange rate stability. This strategy aligns with broader efforts to ensure sufficient foreign currency reserves while supporting domestic financial markets. Analysts view the current reserve levels as adequate for short-term stability, but ongoing structural challenges in trade and investment highlight the need for continuous monitoring.
The SBP’s report also underscores the interplay between central bank reserves and commercial banking liquidity. With commercial banks holding net reserves of $5,400 million, the private banking sector continues to play an essential role in supporting foreign exchange circulation and financing trade activities. Coordinated management between the SBP and commercial banks helps mitigate sudden shocks and maintain orderly market conditions.
Economists argue that gradual increases in reserves, such as the $21 million reported this week, should be viewed within the broader context of Pakistan’s macroeconomic strategy, which includes promoting exports, attracting foreign investment, and managing debt. While short-term movements in reserves are closely watched, sustained growth over months is generally considered a stronger indicator of financial resilience.
Follow the PakBanker Whatsapp Channel for updates across Pakistan’s banking ecosystem.