By Ayesha Saba

Pakistan’s foreign exchange reserves increased to $20.6 billion by mid-April 2026, reflecting an improvement in the country’s external position.

According to the “Monthly Economic Update & Outlook April 2026” released by the Finance Division and available with Wealth Pakistan, Pakistan’s total foreign exchange reserves stood at $20.6 billion as of April 17, 2026.

The data shows that out of the total reserves, $15.1 billion were held by the State Bank of Pakistan, while $5.5 billion were held by commercial banks, indicating the distribution of external buffers within the financial system.

A comparison with the previous year shows a notable increase in reserves. As of April 18, 2025, total reserves stood at $15.4 billion, including $10.2 billion held by the central bank and $5.2 billion by commercial banks. This indicates an increase of over $5 billion in total reserves over the one-year period.

The report also shows that reserves were recorded at $19.3 billion at the end of June 2025, suggesting continued accumulation during the current fiscal year.

The increase in reserves is aligned with improvements in the external account, including current account surpluses and strong remittance inflows during the period.

The data indicates that workers’ remittances played a key role in supporting the external sector. During July-March FY2026, remittances increased to $30.3 billion, contributing to foreign exchange inflows.

The report also highlights exchange-rate developments. The Pakistani rupee appreciated slightly against the US dollar, with the exchange rate improving from 281.0 per dollar on April 29, 2025, to 278.8 per dollar on April 29, 2026.

This change reflects relative stability in the currency market over the period, supported by improved external inflows and reserve accumulation.

The document also provides data on foreign investment flows. Foreign direct investment (FDI) was recorded at $1.4 billion during July-March FY2026, contributing to external inflows.

At the same time, portfolio investment recorded net outflows, indicating mixed trends in foreign investment during the period.

The data indicates that the increase in foreign exchange reserves is supported by multiple factors, including remittances, current account performance, and investment flows.

The report reflects an improvement in Pakistan’s external buffers, as captured in the official statistics for April 2026.

Credit: INP-WealthPk