Pakistan’s foreign exchange reserves see slight decline

Pakistan’s foreign exchange reserves recorded a minor decline during the week ending October 31, 2025, slipping by USD 23.96 million or 0.12 percent. The country’s total liquid reserves now stand at USD 19.66 billion, according to data released by the State Bank of Pakistan (SBP).

The SBP’s own reserves, however, showed a small improvement, rising by USD 31.24 million to reach USD 14.50 billion compared to USD 14.47 billion a week earlier. This represents a weekly increase of 0.22 percent, indicating some stability in the central bank’s foreign holdings.

In contrast, net foreign reserves held by commercial banks fell by USD 55.20 million to USD 5.16 billion from USD 5.22 billion recorded on October 24, reflecting a 1.06 percent decrease over the week.

The overall reduction in the country’s reserves is mainly attributed to the fall in commercial banks’ holdings, while the central bank’s position improved slightly. Analysts suggest that such week-to-week movements are routine and often depend on external debt repayments, trade-related inflows, and foreign investment trends.

Pakistan’s foreign reserves remain an important indicator of its external sector stability, influencing both exchange rate trends and investor sentiment.