Qudsia Bano

Pakistan’s liquid foreign exchange reserves registered a marginal uptick, with the overall stock reaching US$19.57 billion, according to the latest data released by the State Bank of Pakistan (SBP). The central bank’s reserves posted a modest increase during the week, providing a slight cushion for the country’s external account at a time when exchange rate stability remains a top economic priority.

As per the SBP, the central bank’s reserves rose by US$13 million, bringing the total held by the SBP to US$14.26 billion. Meanwhile, commercial banks’ foreign exchange reserves remained steady at US$5.31 billion. This brought Pakistan’s total liquid reserves to US$19.57 billion as of August 15, 2025.

Although the weekly rise in SBP’s reserves is relatively small, analysts stress that consistency in positive movements is vital. A steady build-up of reserves enhances Pakistan’s capacity to meet external payment obligations, including imports and debt servicing. Gradual accumulation also helps restore investor confidence and provides support to the exchange rate against speculative pressures.

The trend underscores the importance of sustaining inflows through exports, workers’ remittances, and multilateral financing. However, experts caution that any volatility in global oil prices or upcoming external debt repayments could exert renewed pressure on the reserves, highlighting the need for prudent foreign exchange management.

The improvement in SBP’s holdings comes as policymakers intensify efforts to stabilize the balance of payments and maintain macroeconomic stability. With central bank reserves now above the US$14 billion mark, authorities are expected to prioritize the preservation of this buffer to shield the economy from external shocks and reinforce market stability.

Credit: INP-WealthPk