SBP Reserves Cross $16.1 Billion This Week. Pakistan’s foreign exchange position showed a positive trend this week as liquid reserves increased slightly. According to official data released by the State Bank of Pakistan, the country’s foreign exchange reserves held by the central bank rose by $16 million during the week ending January 23, 2026. This increase brought the SBP’s total reserves to $16.101 billion.
SBP Weekly Data on Foreign Exchange Holdings
The weekly data shared by the State Bank of Pakistan revealed that the improvement, though modest, reflects stability in the country’s external accounts. SBP’s reserves form the largest portion of Pakistan’s total foreign exchange holdings and are closely watched by investors, lenders, and international institutions.
Total Foreign Exchange Reserves in Pakistan
According to the same report, Pakistan’s total foreign exchange reserves stood at $21.293 billion by the end of the reported week. This figure includes reserves held by the central bank as well as those maintained by commercial banks operating in the country.
Increase in Commercial Banks’ Reserves
Alongside the rise in SBP reserves, commercial banks also recorded an increase in their foreign exchange holdings. Banks’ reserves went up by $22 million during the week, closing at $5.192 billion. This increase contributed to the overall growth in Pakistan’s total reserves and reflects improved liquidity within the banking system.
Market Expectations and Expert Analysis
According to Topline Securities, Pakistan’s foreign exchange reserves held by the State Bank of Pakistan are expected to reach a new high by the end of the current calendar year. Analysts believe that continued inflows, controlled imports, and external financing could support further reserve accumulation in the coming months.
Import Cover Outlook for Pakistan
Experts note that if the projected reserve levels are achieved, Pakistan’s foreign exchange holdings will be sufficient to cover nearly three months of imports. This level of import cover is considered a key indicator of economic stability, as it shows the country’s ability to meet external payment obligations without immediate pressure.
Why Rising Forex Reserves Matter
An increase in foreign exchange reserves strengthens confidence in the economy. It helps stabilize the local currency, supports foreign trade, and improves Pakistan’s standing with international lenders. Strong reserves also give policymakers more flexibility in managing external shocks and global market volatility.
Conclusion
The rise in SBP reserves to over $16.1 billion marks a small but positive development for Pakistan’s economy. With total reserves crossing $21.2 billion and expectations of further improvement by year-end, the outlook for foreign exchange stability appears cautiously optimistic. Continued discipline in economic management will be key to sustaining this momentum in the months ahead.
