By Qudsia Bano
ISLAMABAD, Oct 24 (Wealth Pakistan) – Pakistan’s total liquid foreign exchange reserves reached US$19.85 billion as of October 17, 2025, marking a slight improvement in the country’s financial position, according to the State Bank of Pakistan (SBP).
The latest figures show that US$14.46 billion is held by the SBP, while commercial banks maintain US$5.40 billion. These reserves form the country’s primary buffer to meet external payment obligations, stabilize the exchange rate, and maintain import cover.
Modest Weekly Increase
During the week ending October 17, 2025, the SBP’s reserves increased by US$14 million, reaching US$14,455.2 million. The marginal rise reflects continued inflows from workers’ remittances, export receipts, and the careful management of debt repayments.
Import Cover and Stability
The current reserve level provides Pakistan with a little over two months of import cover—a key benchmark for assessing external sector stability. Analysts say that although the increase is modest, it demonstrates the central bank’s cautious strategy to maintain foreign exchange liquidity amid challenging global financial conditions.
Broader Economic Context
Pakistan’s foreign reserves have fluctuated over recent years due to debt servicing, commodity price volatility, and variable capital inflows. However, the recent steady buildup aligns with the government’s broader efforts to strengthen the external account and stabilize the rupee.
Outlook for Coming Months
With total reserves nearing the US$20 billion mark, short-term prospects for the external sector appear relatively stable. Consistent inflows from exports, remittances, and potential disbursements from development partners are expected to further support the country’s foreign exchange position in the months ahead.