Pakistan FX Reserves Edge Up as SBP Holdings Reach $16.09 Billion
Pakistan’s foreign exchange reserves held by the State Bank of Pakistan increased by $16 million to $16.09 billion in the week ending January 16, 2026, marking the second consecutive weekly rise.
IMF Raises Red Flags Over Governance Gaps in Pakistan’s Financial Sector Amid 2028 Islamic Banking Shift
An IMF governance diagnostic warns that while Pakistan’s financial sector shows resilience, governance weaknesses, institutional gaps, and the upcoming shift to a fully Islamic banking system by 2028 pose significant risks to long-term financial stability.
Government to Raise Rs5.8 Trillion Through SBP Auctions to Support Budget Financing
The Government of Pakistan, in coordination with the State Bank of Pakistan, plans to raise Rs5.8 trillion through MTBs, PIBs, and Government Ijara Sukuk from November 2025 to January 2026 to support budget financing, liquidity management, and monetary stability.
SBP Injects Rs1.8 Trillion Through OMO to Stabilize Market Liquidity
The State Bank of Pakistan (SBP) conducted a major Open Market Operation, injecting Rs1.8 trillion into the financial system through conventional reverse repo and Shariah-compliant Modarabah-based mechanisms to address liquidity requirements.
Monetary Policy at a Crossroads: Challenges Ahead for SBP’s Credibility
The State Bank of Pakistan (SBP) has strengthened its credibility through measured monetary policy decisions, but rising inflationary pressures, expanding money supply, and external pressures from the IMF pose critical tests. Experts highlight the need for cautious policy, transparent communication, and modern engagement strategies to maintain market confidence and economic stability.
Pakistan’s Forex Reserves Dip by $165 Million Amid Commercial Bank Outflows
Pakistan’s total foreign exchange reserves declined by $165 million in the week ending October 24, 2025, as commercial banks saw significant outflows despite a slight rise in SBP’s own reserves. Analysts expect inflows from the IMF under the Extended Fund Facility to support reserve levels and stabilize the currency.
Pakistan Records Sharpest Drop in Default Risk, Second-Best Global Performer in Emerging Markets
Pakistan has posted one of the steepest declines in sovereign default risk worldwide, emerging as the second-best performer among global economies, according to CDS-implied data by Bloomberg. The improvement reflects rising investor confidence, policy stability, and ongoing IMF-backed reforms.
SBP Injects Rs3.2 Trillion Liquidity Through OMO to Stabilize Banking System
The State Bank of Pakistan injected Rs3.21 trillion liquidity through reverse repo and Modarabah-based OMOs, ensuring stability across conventional and Islamic banking systems.
State Bank of Pakistan’s Forex Reserves Edge Higher, Surpass IMF Targets
The State Bank of Pakistan’s foreign exchange reserves rose by $11 million to $14.243 billion in the week ending August 8, crossing IMF targets and lifting total liquid reserves to $19.496 billion, with commercial banks holding $5.253 billion.