Pakistan’s foreign exchange reserves held by the State Bank of Pakistan rose during the week ended October 16, 2026, even as the country’s total liquid reserves slipped on a decline in commercial banks’ holdings.
According to the State Bank of Pakistan (SBP), its foreign exchange reserves rose by $19.1 million over the week to $21.489 billion, up from $21.470 billion a week earlier.
SBP forex reserves: what the weekly numbers show
The country’s total liquid foreign reserves stood at $26.833 billion as of October 16, down by $30.3 million from the previous week. The total comprises $21.489 billion held by the SBP and $5.344 billion maintained by commercial banks.
Reserves held by commercial banks fell by $49.4 million compared with a week earlier, dragging the overall figure down despite the central bank’s gains.
The SBP said the current dollar reserves can cover imports for 3.01 months, a key measure of external stability watched by markets and rating agencies.
Steady build-up since last week’s reading
The latest figures extend a gradual build-up in the country’s external buffers. In the week ended October 9, SBP-held reserves had risen by $15 million to $21.454 billion, with total liquid reserves at $26.797 billion, as reported in our earlier reserves update. A week before that, the central bank’s holdings stood at $21.439 billion after a $38.9 million increase, covered in our September reserves report.
The trend matters because the recovery has come largely without fresh borrowing. SBP Governor Jameel Ahmad told foreign investors at the IMF and World Bank annual meetings in Bangkok earlier this month that reserves had recovered from under $3 billion in February 2023 to about $21.5 billion by October 9, driven by the central bank’s own foreign exchange purchases rather than new debt.
He added that the SBP’s forward liabilities had been cut from more than $5.7 billion to below $1 billion, and that the external debt stock had risen only marginally over the past three years.
Why it matters for Pakistan
The weekly reserve numbers feed directly into the rupee’s stability and the central bank’s room to manage payments. An almost balanced current account in fiscal year 2026 has allowed the SBP to keep buying foreign currency from the market, and the bank expects those purchases to continue, with the current account deficit projected between zero and 1 per cent of GDP in FY27.
Regulatory reforms covering exchange companies and the channelling of remittances through formal channels have also improved liquidity in the interbank foreign exchange market, according to the central bank.
For readers, the headline is simple: reserves keep inching upward, the import cover is holding above three months, and the build-up continues to rest on market purchases rather than borrowing.
Frequently asked questions
What are Pakistan’s current foreign exchange reserves?
As of October 16, 2026, total liquid foreign exchange reserves stood at $26.833 billion, of which $21.489 billion were held by the State Bank of Pakistan and $5.344 billion by commercial banks.
Did reserves rise or fall this week?
SBP-held reserves rose by $19.1 million, but total liquid reserves fell by $30.3 million because commercial banks’ holdings dropped by $49.4 million.
How many months of imports can the reserves cover?
The current dollar reserves can cover imports for 3.01 months, based on the average imports of the last three months.
