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Pakistan’s foreign exchange position showed marginal improvement as the State Bank of Pakistan (SBP) reported a $16 million increase in its reserves, taking total SBP-held reserves to $16.07 billion for the week ending January 9, 2026, reflecting stability supported by steady inflows and market operations.
According to the SBP’s weekly data released on Thursday, the central bank’s foreign exchange reserves rose by $16 million week-on-week to $16.072 billion. As a result, Pakistan’s total liquid foreign exchange reserves increased to $21.248 billion during the reported week.
Reserves held by commercial banks stood at $5.177 billion, contributing to an overall weekly increase of $56 million in total liquid reserves. The SBP noted that the country’s import cover remained stable at approximately 3.4 months, indicating a relatively improved external position.
An SBP official stated that the gradual buildup reflects “routine inflows, prudent market operations, and continued support from remittances and external financing,” adding that reserve stability remains a key focus amid global financial uncertainty.
Pakistan’s foreign exchange reserves have remained under pressure over the past two years due to high external debt repayments, elevated import bills, and currency volatility. However, recent months have shown signs of stabilization, supported by improved remittance inflows, controlled imports, and financial support from international partners.
The modest rise in SBP reserves suggests that while challenges persist, the country’s external buffers are holding steady, offering short-term reassurance to markets and policymakers.
Economists believe that sustaining reserve growth will depend on continued remittance strength, timely external inflows, and export recovery. Any significant improvement, however, will likely require long-term structural reforms and consistent economic management.
