Pakistan’s central bank has exceeded its foreign exchange reserves target for fiscal year 2025-26, with its holdings rising above USD18 billion after a sharp increase of nearly USD2 billion in the first week of the new fiscal year, reflecting improving external account stability supported by official inflows, record workers’ remittances and prudent debt management.
According to the State Bank of Pakistan’s (SBP) weekly statement released Thursday, the central bank’s foreign exchange reserves increased by USD1.944 billion to USD18.471 billion during the week ended July 3, 2026, from USD16.527 billion a week earlier.
The SBP said the increase reflected the realization of Government of Pakistan inflows received during the week.
The latest reserves level means the central bank has exceeded its FY2025-26 target of USD18 billion despite making about USD9 billion in external debt repayments during the final quarter of the fiscal year.
The increase underscores improving external sector conditions, supported by record workers’ remittances, timely external financing and better debt management, strengthening Pakistan’s external buffers.
SBP Governor Jameel Ahmad has said the country’s foreign exchange reserves are expected to continue strengthening, with the central bank’s holdings projected to reach about USD20 billion by December 2026.
Net foreign exchange reserves held by commercial banks were largely unchanged at USD5.518 billion, compared with USD5.517 billion a week earlier.
As a result, Pakistan’s total liquid foreign exchange reserves increased to USD23.989 billion as of July 3, from USD22.045 billion a week earlier, according to the SBP.
The latest figures mark one of the largest weekly increases in the central bank’s foreign exchange reserves in recent years and reinforce expectations of continued improvement in Pakistan’s external account during the current fiscal year.
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