Karachi, September 4, 2025 – Pakistan’s foreign exchange position showed modest improvement as the country recorded a rise of $42 million in its forex reserves during the outgoing week, according to the latest data issued by the State Bank of Pakistan (SBP).
As per the report, the total liquid forex reserves increased to $19.66 billion by the week ending August 29, 2025, compared with $19.618 billion recorded a week earlier on August 22, 2025. The rise in reserves, though limited, has been viewed as a positive signal for economic stability at a time when the country is heavily reliant on external inflows.
The central bank’s share of the forex reserves grew by $29 million, reaching $14.303 billion compared with $14.274 billion a week earlier. Meanwhile, commercial banks also posted a combined increase of $13 million in their reserves, taking the figure to $5.357 billion.
Looking ahead, Pakistan’s forex outlook is expected to strengthen further with anticipated inflows from the International Monetary Fund (IMF). The government is waiting for the disbursement of nearly $1 billion as the third tranche under the Extended Fund Facility (EFF). An IMF review mission is scheduled for this month, and experts believe that successful negotiations will unlock the tranche, providing much-needed support to the country’s reserves.
Analysts note that sustaining this upward momentum in forex reserves is critical for stabilizing the exchange rate, meeting external payment obligations, and restoring investor confidence in the domestic economy.