Qudsia Bano

Pakistan’s total liquid foreign exchange reserves rose to $19.81 billion as of October 10, 2025, showing a marginal improvement over the previous week, according to data released by the State Bank of Pakistan (SBP) on Thursday.

The central bank’s reserves stood at $14.44 billion, marking an increase of $21 million during the week ended October 10. The rise reflects the inflow of funds that helped strengthen the SBP’s holdings after several weeks of relative stability.

Meanwhile, net foreign reserves held by commercial banks were recorded at $5.37 billion, bringing the country’s total liquid foreign reserves to $19.81 billion. This composition shows that the SBP holds nearly three-fourths of the total, while the remaining portion lies with commercial banks operating in Pakistan.

The weekly update, issued as part of the SBP’s routine disclosure of the country’s foreign exchange position, provides an important snapshot of the reserves available for external payments, import financing, and debt servicing.

While the increase remains modest, it indicates the central bank’s continued efforts to maintain a steady reserves position through active management of inflows and outflows.

In recent months, Pakistan’s reserves have largely remained within the $19–20 billion range, reflecting a balance between inflows from multilateral institutions, workers’ remittances, and outflows for external obligations.

Sustaining foreign reserves at current levels is crucial for preserving exchange rate stability and ensuring Pakistan’s capacity to meet its international payment commitments, the report added.

Credit: INP-WealthPk