Pakistan foreign exchange reserves recorded a marginal but positive movement during the final week of December 2025, with the State Bank of Pakistan (SBP) reporting a modest increase in its holdings despite an overall decline in total national reserves. The latest data highlights improving long-term trends in Pakistan’s external position, even as short-term pressures remain visible in commercial bank reserves.
According to figures released by the State Bank of Pakistan, SBP-held foreign exchange reserves increased by $12.6 million, or 0.08 percent week-on-week, reaching $15.92 billion for the week ended December 26, 2025.
Pakistan Foreign Exchange Reserves: Weekly Snapshot
While SBP reserves showed improvement, Pakistan’s total liquid foreign exchange reserves declined slightly during the same period. Total reserves fell by $10.4 million, or 0.05 percent, settling at $21.01 billion.
This decline was largely driven by a reduction in reserves held by commercial banks, which dropped by $23 million, or 0.45 percent, to $5.1 billion. The contrast between central bank gains and commercial bank outflows underscores the uneven distribution of foreign currency liquidity within the financial system.
In simple terms, the central bank strengthened its reserve buffer, while banks experienced routine foreign exchange movements linked to trade financing, repayments, and private sector obligations.
Strong Fiscal Year Recovery in Pakistan Foreign Exchange Reserves
Despite short-term fluctuations, Pakistan foreign exchange reserves have posted a strong recovery during the current fiscal year. Since the start of FY2025, SBP-held reserves have risen by $6.85 billion, representing a robust 75.58 percent increase.
This improvement reflects a combination of:
• Multilateral and bilateral inflows
• Improved current account management
• External financing arrangements
• Stabilization measures under economic reform programs
On a calendar-year basis, SBP reserves have increased by $4.2 billion, or 35.9 percent, highlighting sustained momentum throughout 2025.
Monthly Trend: Pakistan Foreign Exchange Reserves in November 2025
The SBP’s monthly data further reinforces the positive trend. In November 2025, SBP-held foreign exchange reserves increased by $85.9 million, rising to $14.59 billion from $14.50 billion in October 2025.
On a year-on-year basis, SBP reserves recorded a significant jump of $2.55 billion, or 21.19 percent, compared to $12.04 billion in November 2024. This annual growth reflects a notable strengthening of Pakistan’s external buffers amid ongoing economic adjustments.
Commercial Banks and Total Reserves: Mixed Signals
While central bank reserves improved, net foreign reserves held by commercial banks declined on a monthly basis. In November 2025, bank-held reserves stood at $4.55 billion, down by $122.8 million from the previous month.
However, when viewed annually, commercial bank reserves were still higher by $457.7 million, or 11.19 percent, compared to November 2024. This indicates that while monthly volatility persists, the broader trajectory remains positive.
As a result of these movements, Pakistan’s total liquid foreign exchange reserves at the end of November 2025 stood at $19.14 billion, slightly lower than October levels but 18.66 percent higher year-on-year, translating into an annual increase of over $3 billion.
Fiscal Year Perspective: A Broader Recovery Story
Looking at the longer-term fiscal trend, Pakistan foreign exchange reserves have recovered significantly since early 2025. From a low of $15.6 billion in January 2025, total reserves improved by $3.54 billion, marking a 22.71 percent increase over ten months.
This steady recovery highlights improving external sector management and reinforces confidence in Pakistan’s ability to meet near-term foreign obligations, support import financing, and stabilize the exchange rate environment.
Outlook for Pakistan Foreign Exchange Reserves
While short-term fluctuations remain inevitable, the overall trend in Pakistan foreign exchange reserves points toward gradual stabilization. Continued fiscal discipline, export growth, and sustained external inflows will be critical to maintaining this momentum into 2026.
For policymakers and investors alike, the steady rise in SBP-held reserves provides reassurance, even as vigilance remains necessary to manage pressures in the broader financial system.