State Bank of Pakistan’s Foreign Exchange Reserves Rise by $11 Million

The State Bank of Pakistan (SBP) reported an increase in its foreign exchange reserves, as holdings climbed by 11 million on a weekly basis. According to data released by the central bank on Friday, SBP’s reserves reached 11 million on a weekly basis. According to data released by the central bank on Friday, SBP’s reserves reached 14.24 billion as of August 8. This slight uptick comes after a week marked by a decline, showcasing the ongoing fluctuations in Pakistan’s foreign currency holdings.

Overall Foreign Reserves and Commercial Bank Figures

Pakistan’s total liquid foreign reserves, which include both the State Bank of Pakistan’s (SBP) holdings and those of commercial banks, were recorded at $19.49 billion. Out of this total, commercial banks held $5.25 billion in net reserves. These figures reflect the combined strength of the country’s available foreign currency, which is crucial for meeting international obligations and maintaining economic stability.

Weekly Trends and Central Bank Activity

The central bank’s latest statement did not specify the reasons behind the 11million weekly increase. However, the SBP highlighted a reversal in the trend compared to the previous week, when reserves had dropped by $72 million.

This was a notable change from the $11 million weekly increase observed earlier. Such week-to-week variations are common and may be influenced by multiple factors, including changes in external inflows, government payments, and interventions in the foreign exchange market.

SBP’s Market Purchases Over the Year

A significant detail from the central bank’s published data reveals that between June 2024 and April 2025, the SBP purchased a total of $7.23 billion from domestic foreign exchange markets. This demonstrates the SBP’s active role in maintaining and boosting the country’s foreign currency reserves. Such purchases are often executed to support the rupee, ensure liquidity in the market, and stabilize the exchange rate against major currencies.

Implications for Pakistan’s Financial Stability

The movement in foreign exchange reserves is closely monitored by investors, policymakers, and international creditors. The latest data provides a snapshot of Pakistan’s current financial position and signals the central bank’s ongoing efforts to manage its reserve levels amid economic challenges and external obligations. These reserves play a vital role in financing imports, repaying external debt, and underpinning investor confidence in the country’s economic direction.