Pakistan’s forex reserves edge higher despite monthly dip in SBP holdings

WEB DESK: Pakistan’s total foreign exchange reserves saw a modest rise during the week ending October 17, 2025, gaining $43 million, or 0.22 percent, to reach $19.85 billion, according to data released by the State Bank of Pakistan (SBP). 

Weekly rise led by central and commercial banks 

The SBP’s own reserves increased by $14.4 million during the week, while those held by commercial banks climbed by $28.6 million. This small but steady rise reflects ongoing efforts to maintain external stability, supported by a more favourable current account position and improved foreign inflows. 

Monthly data shows minor dip 

However, the central bank’s monthly data painted a different picture. The SBP’s reserves fell by $144.9 million in September to $14.17 billion, compared to $14.32 billion in August. Despite this short-term dip, the year-on-year comparison shows a strong rebound, as the SBP’s reserves were up by more than $3.43 billion, or 32 percent, from September 2024, when they stood at $10.73 billion. 

Commercial banks post slight decline on monthly basis 

Meanwhile, commercial banks’ net foreign reserves stood at $4.72 billion at the end of September, slightly lower than $4.76 billion a month earlier, marking a decline of $27.9 million. On an annual basis, however, their reserves grew by $65.4 million compared to $4.66 billion in the same month last year. 

Annual performance remains positive 

Overall, Pakistan’s total liquid foreign reserves amounted to $18.90 billion at the end of September, down from $19.08 billion in August. Despite the monthly fall of $172.8 million, total reserves were still up by $3.5 billion, or nearly 23 percent, from the previous year, reflecting the country’s gradual progress in rebuilding its foreign currency buffers. 

Analysts believe the reserves’ upward trend over the past year signals improved external confidence, though consistent inflows from exports, remittances and foreign investment will be key to sustaining this stability in the months ahead.