The foreign exchange reserves held by the State Bank of Pakistan (SBP) experienced a modest increase during the week ending July 11, 2025, reinforcing a period of relative stability in the country’s external financial position. According to official data released by the SBP on Thursday, reserves rose by $23 million over the previous week, bringing the central bank’s total reserves to $14.526 billion.
The figure compares to $14.502 billion recorded on July 4, reflecting continued momentum in Pakistan’s efforts to maintain an adequate cushion of foreign exchange amid ongoing macroeconomic adjustments. The increase, although slight, signals continued control over external accounts and a steady inflow of foreign currency through remittances, multilateral disbursements, and moderate trade activity.
The total liquid foreign currency reserves held by the country—including both SBP reserves and net reserves maintained by commercial banks—stood at $19.957 billion during the week. This marks a decline of $72 million compared to the previous week’s figure, indicating a slight dip in bank-held reserves.
Net reserves held by banks other than the SBP were reported at $5.432 billion, a decrease of $96 million from the preceding week. The drop in commercial bank holdings offset the SBP’s gain, resulting in a net weekly contraction in total reserves. Analysts attribute the decline in bank-held reserves to short-term external payments and seasonal fluctuations in financial flows.
The SBP’s ability to maintain reserves above the $14.5 billion threshold is seen by market observers as a positive signal, particularly in light of Pakistan’s recent current account surplus and rising remittance flows. It also reflects cautious monetary management by the central bank as it navigates the challenges of external debt servicing, inflation control, and currency stability.
While the total reserves remain vulnerable to shifts in global commodity prices and capital market movements, the central bank’s strategy of reserve accumulation—supported by inflows from international lending institutions and bilateral arrangements—has provided some resilience.
Furthermore, the recent current account surplus of $2.1 billion posted for FY25 has helped ease pressure on the SBP’s reserves position. Combined with robust remittances and controlled imports, the external sector appears more balanced than in previous fiscal cycles.
However, economic planners and monetary authorities continue to emphasize the need for vigilance, especially in managing outflows related to debt repayments and safeguarding against global financial volatility.
Looking forward, the SBP’s reserve trajectory will be closely watched by international rating agencies, investors, and financial institutions as a barometer of macroeconomic stability. The central bank’s weekly data releases will remain a key reference point for assessing the sustainability of Pakistan’s external position and its capacity to withstand global economic headwinds.
The incremental gain in SBP-held reserves, while modest, is a reminder of the ongoing effort to strengthen the country’s financial buffers and reinforce confidence in Pakistan’s external management framework.