SBP Forex Reserves Edge Up by USD 13mn to USD 17.04bn as of July 31

Pakistan's central bank foreign exchange reserves increased by USD 13 million to USD 17.043 billion during the week ended July 31, according to data released by the State Bank of Pakistan (SBP).

 

The country's total liquid foreign exchange reserves rose by USD 32 million to USD 22.475 billion, while commercial banks' holdings increased by USD 19 million to USD 5.432 billion.

 

The SBP expects its foreign exchange reserves to reach USD 20.2 billion by December 2026 and exceed USD 21 billion by June 2027. Pakistan's external debt repayments for FY27 have been revised down to USD 21.5 billion following the rollover of USD 5 billion in Saudi deposits, with USD 6.1 billion of the revised repayments already settled.

 

Pakistan recorded a current account deficit of USD 139 million in FY26, remaining near the lower end of official projections. Record workers' remittances helped offset the impact of a wider trade deficit amid geopolitical tensions in the Middle East, while a surplus in the financial account enabled the SBP to strengthen its reserves and reduce forward liabilities.

 

The central bank also purchased USD 635 million from the interbank market in April, compared with USD 667 million in March. Cumulative purchases reached USD 7.1 billion during the first 10 months of FY26, up from USD 6.7 billion in the corresponding period a year earlier. Over the 12 months from May 2025 to April 2026, the SBP purchased a total of USD 8.13 billion from the interbank market.