KARACHI: Foreign exchange liquidity reserves in Pakistan climbed to $22.498 billion on August 7, 2026. This was higher by $24 million against the figure of $22.475 billion observed on July 31, 2026. The figures were released by the SBP last week through its weekly report.

In a statement issued by the State Bank of Pakistan, the country's FX reserves posted an increment of $14 million to reach $17.057 billion for the week under review. This marked rise in the country's foreign exchange reserves stems primarily from the higher accumulation of the centrally-held reserves, which accounted for the majority of this increment.

Apart from the foreign reserves of the central bank, the commercial banking industry recorded a foreign reserves gain of $10 million, taking the total to $5.441 billion. In combination, the gains in both the SBP and commercial banking industry have played an instrumental role in boosting total forex reserve growth, despite the small increments noted in both categories.

Another aspect to consider here is the target that the State Bank of Pakistan (SBP) has established itself for its reserve balance. According to the target set by the SBP, the reserve amount should stand at $20.20 billion by the end of December 2026. As it currently stands, the SBP reserves stand at around $17.057 billion—implying that the central bank seems to be on track to meet its year-end target.

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What Forex Reserves Rise Signifies for Pakistan's External Account

Forex reserves have risen incrementally week-on-week, providing an encouraging indicator for Pakistan’s external balance sheet performance amid a period characterized by hefty payments related to the settlement of outstanding foreign debt obligations. Ongoing increases in forex reserves, albeit gradual week-by-week, are expected to help improve Pakistan’s buffers against possible external risks while enhancing its credibility in meeting international monetary obligations.

Pakistan has been able to steadily increase its forex reserves each week this year. Forex reserves rose week-on-week despite challenges faced in raising export earnings and imports continuing to remain high.