By Moaaz Manzoor

Pakistan’s liquid foreign exchange reserves totalled $22.671 billion during the week ended June 5, 2026, gaining $35.7 million from the previous week, according to data released by the State Bank of Pakistan (SBP).

The SBP data showed that total liquid foreign exchange reserves stood at $22.636 billion on May 29, 2026. The latest weekly increase was supported by gains in both the central bank’s reserves and those held by commercial banks, reflecting a modest improvement in the country’s external liquidity position.

Net foreign exchange reserves held by the SBP rose to $17.215 billion on June 5 from $17.190 billion on May 29, an increase of $24.8 million. Reserves held by commercial banks increased to $5.456 billion from $5.445 billion during the same period, posting a gain of $10.9 million.

Foreign exchange reserves remain a key indicator of Pakistan’s ability to meet external payment obligations, finance imports and support confidence in the currency market. Although the weekly increase was modest, the reserve position remained above $22 billion, providing the economy with a stronger external cushion.

The SBP continued to hold the largest share of the country’s liquid reserves. Of the total $22.671 billion recorded on June 5, the central bank held $17.215 billion, accounting for nearly 76% of the total, while commercial banks held $5.456 billion.

The weekly trend also showed that reserves remained broadly stable through the second half of May and early June. Total liquid reserves stood at $22.588 billion on May 15, increased to $22.646 billion on May 22, eased slightly to $22.636 billion on May 29, and then rose to $22.671 billion by June 5.

Compared with the end of April 2026, the improvement was more substantial. Total liquid foreign exchange reserves stood at $20.804 billion at the end of April, including $15.851 billion held by the SBP and $4.953 billion by commercial banks.

This means total liquid reserves increased by $1.868 billion between end-April and June 5, 2026. During the same period, SBP-held reserves rose by $1.365 billion, while commercial banks’ reserves increased by $503.6 million.

The data also showed a stronger position compared with the end of June 2025, when total liquid foreign exchange reserves stood at $19.269 billion. By June 5, 2026, the level had increased by $3.403 billion.

SBP-held reserves rose from $14.505 billion at the end of June 2025 to $17.215 billion on June 5, 2026, while commercial banks’ reserves increased from $4.763 billion to $5.456 billion over the same period.

The latest figures suggest Pakistan entered June with a significantly stronger foreign exchange reserve position than at the end of April and the close of the previous fiscal year. Maintaining this reserve buffer will remain important for external stability as the country continues to manage import payments, energy purchases, debt-servicing obligations and exchange-rate pressures.

Credit: INP-WealthPk