- September 25, 2026
- Posted by: Tresmark
- Category:
Pakistan’s foreign exchange reserves held by the central bank increased by $11 million to $21.4 billion during the week ended September 18, the State Bank of Pakistan (SBP) said on Thursday.
The country’s total liquid foreign reserves rose by $19 million to $26.811 billion. Commercial banks’ reserves also rose by $8 million to $5.41 billion.
The country’s forex reserves continued to rise, bolstered by a $3 billion Eurobond sale in international capital markets and the SBP’s continued dollar purchases, as the country builds up financing buffers amid a contained external current account. The central bank’s reserves are now sufficient to cover more than three months of imports.
The current account deficit dropped 70 per cent year-on-year (YoY) to $98 million in August, mostly due to strong remittances. The current account gap reduced 36 percent to $543 million in the first two months of the fiscal year 2026-27.
The reserve build-up comes as an IMF mission holds discussions with Pakistan for the fourth review of the $7 billion Extended Fund Facility and the third review of its Resilience and Sustainability Facility. The completion of both reviews would pave the way for the release of about $1.2 billion in funding, further shoring up Pakistan’s external finances.
Finance Minister Muhammad Aurangzeb said last week that Pakistan will seek an expansion of its 30 billion yuan currency swap line with China when the facility expires in 2027, according to reports. He added that he expects a response from the United States within two months on a proposed $10 billion exchange stabilisation facility.
Source: The News
