Key Takeaways
- The State Bank of Pakistan’s foreign exchange reserves increased by $1.2 billion to $18.328 billion.
- The surge is attributed to commercial loan proceeds from the Government of Pakistan.
- Overall liquid foreign reserves reached $23.715 billion, with commercial banks holding $5.387 billion.
The State Bank of Pakistan (SBP) reported a significant increase in foreign exchange reserves, with the total liquid reserves surging to $23.715 billion as of September 4, 2026. This marked a rise of $1.18 billion from the previous week, with the SBP’s foreign exchange reserves specifically increasing by $1.21 billion to $18.328 billion.
According to the SBP’s weekly report, the increase in foreign exchange reserves is directly linked to the receipt of government commercial loan proceeds. The report stated, 'The increase in SBP’s foreign exchange reserves is due to receipt of government of Pakistan commercial loan proceeds.'
However, the net foreign reserves held by commercial banks declined by $22.5 million to $5.388 billion, indicating a shift in the distribution of foreign reserves.
The SBP had successfully met its foreign exchange reserves target for fiscal year 2026, with reserves surpassing $18 billion by the end of June 2026. For December 2026, the SBP has set a target of $20.20 billion.
Dawn Business further elaborated that the central bank’s foreign exchange reserves surged by $1.2 billion to $18.328 billion during the week ending September 4. The report noted that the increase was due to commercial loan proceeds received by the Government of Pakistan.
The overall liquid foreign reserves stood at $23.715 billion, with commercial banks holding $5.387 billion. This distribution highlights the central bank’s role in managing the country’s foreign exchange reserves.
The SBP’s achievement in meeting its foreign exchange reserves target for the fiscal year is a positive indicator for the country’s financial stability and economic growth. The increase in reserves is expected to support the government’s efforts to manage the economy and maintain a stable currency.
