Pakistan’s forex reserves reach $26.8bn after $15m weekly increase

ISLAMABAD: Pakistan’s total liquid foreign exchange reserves increased by $15 million during the latest week, reaching $26.797 billion, according to data released by the State Bank of Pakistan (SBP) on Thursday.

The SBP’s foreign exchange reserves rose by $15 million to $21.4547 billion, while reserves held by commercial banks stood at $5.3437 billion.

As a result, the country’s total liquid foreign exchange reserves reached $26.7974 billion, the SBP said.

The increase in the central bank’s reserves comes as Pakistan and the International Monetary Fund (IMF) reached a staff-level agreement on the fourth review of the $7 billion Extended Fund Facility (EFF) and the third review of the Resilience and Sustainability Facility (RSF).

The agreement, announced on October 7, could unlock around $1.2 billion in additional financing for Pakistan, subject to approval by the IMF Executive Board.

According to the IMF, approval would provide Pakistan with about $1 billion under the EFF and approximately $210 million under the RSF, taking total disbursements under the two programmes to around $5.7 billion.

An IMF team led by Iva Petrova held discussions with Pakistani authorities in Karachi and Islamabad from September 23 to October 7 as part of the 2026 Article IV consultation and reviews of the two programmes.

The IMF said implementation of the EFF programme had remained broadly on track despite a challenging external environment, while authorities had continued work on climate-related reforms under the RSF.

The fund said Pakistan had successfully navigated the impact of the Middle East conflict with the support of the EFF, while economic policies had helped preserve macroeconomic stability.

Real GDP growth reached 4 per cent in the first three quarters of FY26, while growth for the full fiscal year was estimated at 3.6 per cent, according to the IMF.

The fund said higher energy prices and supply disruptions had weakened economic momentum somewhat, while headline inflation, which peaked in May, eased to around 10.3 per cent in September.

The current account remained broadly balanced in FY26, supported by strong remittances, while gross foreign exchange reserves rose to around $21.5 billion by the end of September, the IMF said.

The fund also noted that sovereign rating upgrades and renewed access to international markets reflected stronger policy credibility.

However, it warned that risks to Pakistan’s economic outlook remained high, particularly due to geopolitical tensions, volatile energy prices, tighter global financial conditions and trade disruptions.

The latest increase in reserves comes as Pakistan continues to strengthen its external position under the IMF programme, with higher reserves providing an important buffer against external financing and balance-of-payments pressures.