Pakistan’s foreign exchange reserves held by the State Bank rose to $16.055 billion in the week ending January 2, marking the highest level since fiscal year 2021, the central bank reported on Friday.
Reserves had previously peaked at $17.29 billion in FY21 before declining to a low of $4.44 billion in FY23 amid economic pressures, according to historical data.
The SBP’s report showed reserves grew by $141 million during the latest week. Total liquid foreign exchange held by the country stood at $21.19 billion, while commercial banks’ net holdings were recorded at $5.136 billion.
Since June 2025, foreign exchange buffers have improved from around $14.5 billion, briefly touching $15.88 billion in mid‑December before surpassing $16 billion in late December.
Holding stronger reserves is crucial for debt servicing and import stability, particularly given Pakistan’s external financing obligations. The country paid $26 Billion in debt servicing in the Financial Year 2025 and will have to pay approximately the same amount in Financial Year 2026.
Foreign exchange reserves represent the stockpile of foreign currencies held by a country’s central bank and commercial banks to support external payments, manage exchange rate stability and meet international obligations. For Pakistan, these reserves are vital for financing imports, servicing external debt and maintaining confidence in the financial system.
