State Bank reports nearly $2 billion increase in reserves during latest week
KARACHI: Pakistan’s foreign exchange reserves climbed sharply during the latest reporting week after the country received inflows of $1.944 billion, lifting total reserves to their highest level in more than four years, according to data released by the State Bank of Pakistan (SBP).
The central bank reported that its foreign exchange reserves increased by $1.944 billion, reaching $18.471 billion. The latest figure marks the highest reserve level recorded since 2021 and reflects continued improvement in the country’s external financial position.
Meanwhile, reserves held by commercial banks also registered a modest increase. Their holdings rose by $3 million during the week, bringing the total to $5.518 billion.
Total reserves approach $24 billion
As a result of the latest inflows, Pakistan’s total liquid foreign exchange reserves increased by $1.947 billion to $23.9887 billion, also the highest level since 2021.
The increase provides additional support for the country’s foreign exchange position and strengthens the central bank’s capacity to manage external financing requirements. Higher reserves also improve Pakistan’s ability to meet import payments and external debt obligations.
Economic outlook receives further support
Financial analysts believe the sharp rise in reserves will reinforce investor confidence as Pakistan continues implementing economic reforms aimed at strengthening macroeconomic stability.
The higher reserve level is also expected to improve import cover, reduce pressure on the external account and provide greater stability to the foreign exchange market. In addition, stronger reserves could enhance Pakistan’s ability to manage external economic shocks while supporting confidence among international financial institutions and foreign investors.
The latest figures represent another positive development for the country’s economy as policymakers continue efforts to maintain external stability, strengthen financial resilience and create conditions for sustainable economic growth in the coming months.
