Pakistan’s foreign exchange reserves continue to signal resilience despite global economic uncertainties, according to the latest data released by the State Bank of Pakistan (SBP). For the week ending February 13, 2026, SBP-held reserves inched higher by $19.1 million, or 0.12% week-on-week (WoW), reaching a total of $16.197 billion.
Understanding Pakistan’s Foreign Exchange Reserves
Foreign exchange reserves are a critical indicator of a country’s financial stability, providing a buffer against external shocks and enabling smooth trade operations. Pakistan’s reserves comprise two main components:
- Reserves held by the State Bank of Pakistan: central bank holdings that form the core of the nation’s foreign liquidity.
- Reserves held by commercial banks: additional foreign currency assets that support private-sector trade and finance.
Weekly Movement in Reserves
While SBP-held reserves inched upward, total foreign reserves experienced a slight contraction during the week.
• SBP Reserves: Increased by $19.1 million (+0.12% WoW) to $16.197 billion.
• Commercial Banks’ Reserves: Declined by $92.3 million (-1.78% WoW) to $5.105 billion.
• Total Liquid Foreign Reserves: Dropped by $73.2 million (-0.34% WoW) to $21.302 billion.
This minor dip in total reserves primarily reflects a reduction in commercial bank holdings, rather than a decline in central bank assets.
Yearly Performance: A Strong Recovery
Looking at the broader picture, Pakistan’s foreign reserves have shown remarkable growth in the current fiscal year:
• Fiscal Year 2025-26: SBP-held reserves rose by $7.13 billion, a staggering 78.68% increase.
• Calendar Year 2026: Reserves have already increased by $281.8 million, or 1.77%.
This upward trend underscores the effectiveness of Pakistan’s foreign policy management and central bank interventions in stabilizing foreign currency inflows.
What This Means for the Economy
Rising SBP-held reserves enhance Pakistan’s ability to manage its external obligations, stabilize the rupee, and maintain investor confidence. While weekly fluctuations are normal due to trade settlements, debt repayments, and foreign inflows, the long-term trend points to a stronger liquidity position.
Analysts suggest that sustained reserve growth could help Pakistan navigate upcoming global uncertainties, including fluctuating oil prices and potential trade disruptions. For businesses and investors, this signals an environment where external shocks can be better absorbed, supporting economic stability and planning confidence.
Expert Insight: Weekly Change Explained
The week-on-week changes may appear small in absolute terms, but they provide valuable insight into the dynamics of foreign currency management:
• A minor increase in SBP reserves reflects steady foreign currency inflows, including remittances, aid, and trade receipts.
• The decline in commercial bank reserves might result from increased corporate or import-related foreign currency demands.
• Despite these short-term shifts, overall liquidity remains robust, reinforcing Pakistan’s resilience in global financial markets.
In summary, Pakistan’s foreign exchange reserves are gradually strengthening, with SBP-led growth providing a solid foundation. While commercial banks experience normal week-to-week fluctuations, the total reserves remain at a healthy level, signaling stability and potential for future economic growth.