Pakistan’s Foreign Exchange Reserves Rise to $26.86 Billion as SBP and Commercial Banks Add Dollars

Pakistan’s foreign exchange reserves continued their upward movement during the final week of October 2026, with the State Bank of Pakistan (SBP) and commercial banks both reporting increases in their dollar holdings.

According to the latest weekly figures released by the central bank, SBP-held foreign exchange reserves increased by $39.5 million during the week ended October 30, reaching approximately $21.56 billion. Meanwhile, commercial banks recorded a larger increase of $70.8 million, taking their net foreign exchange reserves to approximately $5.30 billion.

As a result, Pakistan’s total liquid foreign exchange reserves rose by $110.3 million to approximately $26.86 billion.

The latest figures represent the third consecutive weekly increase in the central bank’s reserves and provide another indication of improvement in the country’s external liquidity position.

The increase is particularly notable because commercial banks contributed more to the weekly improvement than the central bank. Their increase of $70.8 million was approximately 1.8 times the SBP’s weekly gain.

Pakistan’s Foreign Exchange Reserves Reach $26.86 Billion

The country’s total liquid foreign exchange reserves stood at $26.864 billion as of October 30, 2026, compared with approximately $26.754 billion a week earlier.

The increase of $110.3 million reflects improvements in both major components of Pakistan’s foreign exchange reserves: holdings maintained by the central bank and net reserves held by commercial banks.

The latest breakdown is as follows:

These figures show that commercial banks accounted for the larger share of the weekly increase.

It is important to understand that total liquid reserves include both the foreign currency holdings of the SBP and the net reserves maintained by commercial banks. Therefore, the country’s overall reserve position should not be confused with the central bank’s holdings alone.

SBP Reserves Increase for the Third Consecutive Week

The State Bank of Pakistan’s foreign exchange reserves increased by $39.5 million during the week under review.

The central bank’s holdings reached $21.561 billion on October 30, compared with $21.522 billion on October 23.

This marked the third consecutive weekly increase in SBP reserves.

Weekly changes in foreign exchange reserves can result from several factors, including external financing, foreign currency inflows, debt repayments, government transactions and movements in the central bank’s foreign currency assets.

However, the weekly reserve statement does not necessarily identify the individual transactions responsible for every increase.

The latest improvement therefore provides an update on the overall reserve position rather than a complete explanation of the sources of the additional dollars.

Commercial Banks Add $70.8 Million to Their Reserves

Commercial banks recorded an increase of $70.8 million in their net foreign exchange reserves during the week ended October 30.

Their holdings increased from $5.233 billion to $5.303 billion.

This was a larger weekly gain than the $39.5 million recorded by the SBP.

The increase is significant because commercial banks play an important role in Pakistan’s foreign exchange system. They facilitate foreign currency transactions involving individuals, businesses, importers, exporters and other customers.

Their net foreign exchange position can change as a result of foreign currency deposits, customer transactions and movements in their foreign currency assets and liabilities.

A rise in commercial banks’ net reserves indicates an improvement in their reported foreign exchange position. However, it should not automatically be interpreted as an equivalent increase in dollars directly available to the central bank for government payments or debt servicing.

The distinction between central bank reserves and commercial bank reserves is important when assessing Pakistan’s external financial position.

Why Are Foreign Exchange Reserves Important for Pakistan?

Foreign exchange reserves are an important indicator of a country’s ability to manage international payments and meet external financial obligations.

Pakistan relies on foreign currency to pay for imported goods and services, including petroleum products, machinery, industrial raw materials, medicines and other essential items.

The country also needs foreign currency to service external debt and meet other international payment commitments.

When reserves improve, the central bank generally has a stronger foreign currency buffer to manage temporary pressures in the foreign exchange market.

Higher reserves can also help improve confidence among businesses, investors and international financial institutions.

However, a higher reserve figure alone does not guarantee economic stability. The country’s external position also depends on imports, exports, remittances, foreign investment, debt repayments and the availability of sustainable foreign currency inflows.

1. Support for External Payments

Pakistan requires substantial foreign currency to pay for imports.

A stronger reserve position can help the country manage external payment requirements and reduce the risk of short-term disruptions caused by foreign currency shortages.

This is particularly important for an import-dependent economy where energy, industrial production and several consumer sectors rely on imported products.

2. Greater Capacity to Manage Exchange Rate Pressure

Foreign exchange reserves can provide the central bank with additional capacity to respond to temporary volatility in the currency market.

A stronger reserve position may help support confidence in the rupee, although the exchange rate also depends on market demand, supply, monetary policy and broader economic conditions.

It would therefore be incorrect to assume that every increase in reserves will automatically result in an appreciation of the Pakistani rupee.

3. Improved Confidence Among Investors

International investors and lenders monitor foreign exchange reserves when assessing a country’s external financial position.

A stronger reserve position can improve perceptions of a country’s ability to meet its international obligations.

However, sustainable improvements in investor confidence also require stable economic policies, manageable debt levels, stronger exports and predictable financial conditions.

SBP Governor Sets $25 Billion Reserve Target for June 2027

The latest increase comes as the State Bank of Pakistan continues working towards higher foreign exchange reserve targets.

SBP Governor Jameel Ahmad has previously indicated that the central bank expects foreign exchange reserves to reach approximately $23 billion by December 2026.

The longer-term target is to increase the SBP’s reserves to approximately $25 billion by June 2027.

These targets indicate the central bank’s intention to strengthen Pakistan’s external financial position over the coming months.

However, achieving them will depend on the availability of foreign currency inflows and the country’s external financing requirements.

Pakistan will need to manage several competing demands, including external debt repayments, import payments and the need to maintain adequate liquidity in the foreign exchange market.

The targets should be understood as expectations rather than guaranteed outcomes.

What Is the Difference Between SBP Reserves and Total Foreign Exchange Reserves?

One of the most important details in the latest reserve figures is the distinction between the money held by the central bank and the reserves maintained by commercial banks.

These two categories are combined to calculate Pakistan’s total liquid foreign exchange reserves, but they do not represent identical types of holdings.

SBP reserves refer to the foreign exchange holdings maintained by the central bank. These are particularly important for managing the country’s external financial obligations and supporting foreign exchange market operations.

Commercial bank reserves represent the net foreign exchange holdings of commercial banks. These are part of the country’s overall foreign currency position but are not the same as funds held directly by the SBP.

For example, on October 30, 2026:

• SBP held approximately $21.56 billion.
• Commercial banks held approximately $5.30 billion in net reserves.
• Combined liquid reserves stood at approximately $26.86 billion.

This distinction matters because headlines reporting Pakistan’s total reserves can sometimes be misunderstood as referring exclusively to the central bank’s holdings.

Could Higher Reserves Help Stabilise the Pakistani Rupee?

An improving foreign exchange reserve position can support confidence in the Pakistani rupee, but it is not the only factor determining the currency’s value.

The exchange rate is influenced by several economic variables, including the supply of dollars, import demand, export earnings, overseas remittances, foreign investment and government financing requirements.

If Pakistan continues receiving foreign currency inflows while managing its external payments, the improved reserve position could provide additional support to the currency market.

However, higher imports or substantial external debt repayments could create renewed pressure.

The relationship between reserves and the exchange rate is therefore not automatic.

For consumers and businesses, a relatively stable rupee can help reduce uncertainty when planning imports, purchasing raw materials and managing foreign currency obligations.

For exporters, exchange rate movements also influence the value of foreign earnings and the competitiveness of locally produced goods.

What Does the Latest Increase Mean for Pakistan’s Economy?

The rise in foreign exchange reserves is an encouraging development for Pakistan’s external financial position.

The latest weekly improvement was supported by gains in both central bank and commercial bank holdings. The commercial banking sector contributed the larger portion of the increase, while SBP reserves recorded their third consecutive weekly gain.

Nevertheless, the sustainability of this improvement will matter more than a single week’s increase.

Pakistan needs consistent foreign currency inflows to maintain stronger reserves over the long term. These can come from export earnings, remittances, foreign investment, external financing and other legitimate sources.

At the same time, the country must manage its import bill and external debt obligations.

A sustainable improvement would ideally be supported by stronger exports, higher productivity, investment in productive sectors and a more balanced external account.

Without these improvements, reserves can remain vulnerable to sudden changes in financing conditions or international market pressures.

Frequently Asked Questions

What are Pakistan’s foreign exchange reserves on October 30, 2026?

Pakistan’s total liquid foreign exchange reserves reached approximately $26.86 billion as of October 30, 2026, according to the latest weekly figures.

How much foreign exchange does the State Bank of Pakistan hold?

The SBP held approximately $21.56 billion in foreign exchange reserves on October 30, 2026.

How much do commercial banks hold in foreign exchange reserves?

Commercial banks held approximately $5.30 billion in net foreign exchange reserves during the same period.

How much did SBP reserves increase during the latest week?

SBP reserves increased by approximately $39.5 million during the week ended October 30, 2026.

Why did commercial bank reserves receive attention?

Commercial banks recorded a weekly increase of approximately $70.8 million, which was around 1.8 times the SBP’s increase of $39.5 million.

What is Pakistan’s foreign exchange reserve target for December 2026?

SBP Governor Jameel Ahmad has indicated an expectation of approximately $23 billion in central bank reserves by December 2026.

What is the SBP’s reserve target for June 2027?

The central bank has indicated a target of approximately $25 billion by June 2027.

Do higher foreign exchange reserves guarantee a stronger rupee?

No. Higher reserves can support confidence and help manage foreign exchange market pressures, but the rupee’s value also depends on imports, exports, remittances, investment, monetary policy and other economic factors.

Conclusion

Pakistan’s foreign exchange reserves increased by $110.3 million to approximately $26.86 billion during the week ended October 30, 2026.

The State Bank of Pakistan contributed an increase of $39.5 million, taking its reserves to $21.56 billion. Commercial banks recorded a larger improvement of $70.8 million, raising their net foreign exchange holdings to approximately $5.30 billion.

The latest figures mark the third consecutive weekly increase in SBP reserves and provide a positive update on the country’s external liquidity position.

The next major milestone will be whether the central bank can achieve its stated targets of $23 billion by December 2026 and $25 billion by June 2027.

For Pakistan, the real test will be maintaining these improvements through sustainable foreign currency inflows, stronger exports, manageable external payments and continued economic stability.