Pakistan Foreign Currency Deposits recorded a modest increase in June 2026, offering a positive signal for the country’s external financing position even as annual figures continued to reflect pressure on domestic savings. The latest figures released by the State Bank of Pakistan (SBP) reveal that overseas inflows remained resilient, helping offset the continued decline in resident foreign currency holdings.
While the month-on-month improvement appears encouraging, the broader trend highlights an important shift in how foreign currency is flowing into Pakistan. The growing contribution of overseas Pakistanis and non-resident investors is becoming increasingly significant at a time when the country continues to manage fiscal challenges, import financing needs, and external debt obligations.
Pakistan Foreign Currency Deposits Reach $6.779 Billion
According to SBP data, Pakistan Foreign Currency Deposits increased by $18.09 million during June 2026, reaching $6.779 billion compared to $6.761 billion in May.
Despite the monthly improvement, annual performance remained under pressure. Total foreign currency deposits were still down by $208.69 million, or nearly 3 percent, compared to $6.988 billion recorded in June 2025. This indicates that while confidence has shown signs of stabilizing in recent months, deposit levels have yet to recover fully from last year’s decline.
Resident Deposits Continue to Face Pressure
Resident foreign currency deposits stood at $5.759 billion during June 2026, registering only a marginal monthly increase of $9.23 million.
However, the yearly comparison paints a more concerning picture. Resident deposits declined by $329.73 million, representing a fall of more than 5 percent compared to June 2025. This trend suggests that businesses and individuals remain cautious about maintaining foreign currency balances, reflecting broader economic uncertainty, changing investment preferences, and liquidity requirements.
The composition of resident deposits shows a balanced distribution across banking products. Demand deposits accounted for $2.127 billion, while savings deposits totaled $1.637 billion and time deposits reached $1.995 billion, indicating that long-term deposit instruments continue to attract significant interest despite overall declines.
Overseas Depositors Strengthen Pakistan Foreign Currency Deposits
One of the strongest highlights of the latest SBP data was the continued growth in non-resident deposits.
Foreign currency deposits held by non-residents increased to $1.020 billion during June 2026, rising by $8.86 million compared to the previous month. Even more significant was the annual performance, with non-resident deposits jumping by $121.04 million, representing a robust 13.46 percent increase over June 2025.
This steady rise demonstrates continued confidence among overseas Pakistanis and foreign account holders, providing valuable foreign exchange support at a time when Pakistan is focused on strengthening its external account and improving reserve stability.
Non-resident balances consisted primarily of demand deposits worth $648.62 million, followed by savings deposits of $221.19 million and time deposits totaling $150.43 million.
Why Pakistan Foreign Currency Deposits Matter for the Economy
Foreign currency deposits play a critical role in Pakistan’s financial system. These funds help banks finance imports, facilitate international trade, and support the country’s external financing requirements.
During June 2026, approximately $766.96 million was utilized for pre-shipment financing, while $143.59 million supported post-shipment financing. Import financing remained the largest use of these resources, with $1.011 billion allocated to facilitate trade and ensure the smooth availability of imported goods.
The banking system also maintained a significant portion of these deposits with the State Bank of Pakistan and commercial banks. A total of $1.447 billion was placed with SBP and domestic banks, including allocations under Cash Reserve Requirement (CRR) and Statutory Cash Reserve Requirement (SCRR) regulations, ensuring sufficient liquidity and regulatory compliance.
In addition, banks maintained $781.75 million as balances abroad and retained $288.33 million as cash holdings, strengthening their ability to meet international payment obligations and customer demand.
Outlook for Pakistan Foreign Currency Deposits
The latest SBP figures present a mixed but cautiously optimistic outlook. While annual declines in resident deposits continue to signal economic pressure, the steady increase in non-resident inflows offers an important source of stability.
If overseas remittances remain strong, investor confidence improves, and macroeconomic reforms continue, Pakistan Foreign Currency Deposits could strengthen further in the coming months. However, sustained recovery will largely depend on domestic economic stability, exchange rate confidence, inflation trends, and the country’s external financing position.
For policymakers, the latest data reinforces the growing importance of attracting overseas capital while rebuilding domestic confidence in Pakistan’s financial system.