Pakistan foreign exchange reserves continued their upward trajectory in early January 2026, reflecting improving external sector stability and strengthening confidence in the country’s macroeconomic outlook. According to the latest data released by the State Bank of Pakistan (SBP), the country’s liquid foreign reserves recorded notable week-on-week, monthly, and year-on-year gains.
During the week ended January 02, 2026, foreign exchange reserves held by the SBP increased by $140.6 million, or 0.88%, reaching $16.06 billion. This rise played a key role in lifting the country’s total liquid foreign reserves to $21.19 billion, up by $180.2 million or 0.86% compared to the previous week.
SBP Foreign Exchange Reserves Drive Weekly Growth
The primary contributor to the latest increase in Pakistan foreign exchange reserves was the central bank. SBP-held reserves rose from $15.91 billion to $16.06 billion within a week, reflecting improved inflows and better external account management.
At the same time, net foreign reserves held by commercial banks also showed positive momentum. Commercial banks’ reserves increased by $39.6 million, or 0.78%, reaching $5.14 billion, supporting overall liquidity in the foreign exchange market.
In explanatory terms, this means that nearly 78% of Pakistan’s total reserves are now held by the SBP, strengthening the central bank’s ability to manage currency volatility and meet external payment obligations.
Pakistan Foreign Exchange Reserves Surge in FY2026
Looking at the broader fiscal picture, Pakistan foreign exchange reserves have posted a remarkable recovery during the current fiscal year. Since the start of FY2026, SBP-held reserves have increased by $6.99 billion, representing a substantial 77.13% growth.
This sharp improvement underscores a combination of factors, including controlled imports, improved current account dynamics, external financing inflows, and better monetary and fiscal coordination.
From a calendar-year perspective, reserves have already increased by $140.6 million in the opening days of 2026, setting a positive tone for the year ahead.
Monthly Data Highlights Continued Reserve Stability
Monthly figures released by the SBP further reinforce the improving trend in Pakistan foreign exchange reserves. In November 2025, SBP-held reserves rose by $85.9 million, reaching $14.59 billion, compared to $14.50 billion in October 2025.
On a year-on-year basis, the improvement is even more pronounced. SBP reserves increased by $2.55 billion, or 21.19%, compared to November 2024, highlighting sustained external sector recovery.
Commercial banks, however, showed a mixed trend on a monthly basis. Net foreign reserves held by banks declined by $122.8 million in November 2025, falling to $4.55 billion from $4.67 billion in October. Despite this monthly dip, banks’ reserves remain $457.7 million higher than last year, reflecting an 11.19% annual increase.
Total Liquid Foreign Reserves: Year-on-Year Strength
By the end of November 2025, Pakistan’s total liquid foreign exchange reserves stood at $19.14 billion, marginally lower than the previous month but significantly stronger on an annual basis.
Compared to $16.13 billion in November 2024, total reserves increased by $3.01 billion, or 18.66%, demonstrating a clear improvement in Pakistan’s external buffers.
From a fiscal trend perspective, reserves have rebounded sharply from $15.60 billion in January 2025. Over the following ten months, Pakistan added $3.54 billion, marking a 22.71% recovery, a development closely watched by investors, rating agencies, and multilateral lenders.
Why Rising Pakistan Foreign Exchange Reserves Matter
Sustained growth in Pakistan foreign exchange reserves strengthens currency stability, supports import financing, improves debt repayment capacity, and enhances investor confidence. A stronger reserve position also gives the SBP greater flexibility in managing exchange rate volatility and navigating external shocks.