By Moaaz Manzoor

Pakistan’s total liquid foreign exchange reserves rose to $21.29 billion during the week ended April 30, 2026, according to data released by the State Bank of Pakistan, reflecting continued improvement mainly driven by higher holdings of the central bank.

According to the SBP data, total liquid reserves stood at $21,293.5 million, compared to $21,269.0 million recorded a week earlier.

The reserves include $15,850.7 million held by the SBP and $5,442.8 million maintained by commercial banks as of April 30.

The latest increase follows a significant recovery in the previous week ended April 24, when total reserves had jumped to $21.27 billion from $20.63 billion a week earlier. The improvement came after earlier pressure caused by external debt repayments and related outflows.

A broader trend also shows gradual strengthening in Pakistan’s external reserves position over recent months. The country’s total liquid reserves stood at $20.83 billion at the end of December 2025, increased to $20.97 billion by the end of January 2026, rose further to $21.06 billion in February, and reached $21.33 billion by the end of March.

The reserves peaked at $21.89 billion during the week ended April 3 before falling sharply to $20.52 billion in the following week because of external debt servicing obligations. Since then, reserves have shown signs of stabilisation amid fresh inflows and easing short-term pressure on the external account.

The SBP-held reserves increased from $15.83 billion in the previous week to $15.85 billion by April 30, while reserves held by commercial banks edged up to $5.443 billion from $5.441 billion a week earlier.

Analysts said the recent stability in reserves reflects the impact of external financial inflows and improved liquidity conditions, although external repayment obligations continue to pose risks to the country’s external position.

Despite the recent recovery, economists cautioned that Pakistan’s reserves still remained heavily dependent on external financing support, rollovers, and bilateral inflows. They stressed that long-term improvement in the external account would require sustained growth in exports, remittances, and foreign direct investment to reduce reliance on debt-creating inflows.

Credit: INP-WealthPk