Pakistan’s Liquid Foreign Exchange Reserves Climb to $19.81 Billion

Pakistan’s Foreign Reserves

Pakistan’s total liquid foreign exchange reserves have increased to $19,810.4 million as of October 3, 2025. The State Bank of Pakistan (SBP) reported an uptick of $20 million in its reserves, bringing the central bank’s total to $14,420.1 million.

In contrast, commercial banks saw a slight decline of $6 million, with their reserves now totaling $5,390.3 million. Overall, this reflects a net increase in the country’s foreign exchange holdings compared to the previous week’s total of $19,796.7 million.

Despite external debt payments — including a $500 million repayment on a Pakistan Sovereign Eurobond — the country’s reserve position remains stable, highlighting its capacity to manage short-term financial obligations.

Implications for the Economy

• Enhanced Stability: Rising reserves improve Pakistan’s ability to meet external debt repayments and manage balance of payments pressures.
• Stronger Import Cover: Higher reserves give the country more room to manage essential imports, particularly fuel and food commodities.
• Increased Investor Confidence: A healthier reserve position can positively impact investor sentiment, potentially supporting the local currency.
• Outlook: Continued support from multilateral lenders, overseas remittances, and controlled imports will be key to maintaining reserve growth.