SBP reserves decline sharply during the week ending July 10, 2026, while Pakistan’s overall liquid foreign exchange reserves remain above $22.6 billion.
Pakistan’s foreign exchange reserves witnessed a notable decline during the week ended July 10, 2026, as the country continued to meet its external debt obligations, according to the latest figures released by the State Bank of Pakistan (SBP).
Data published by the central bank showed that reserves held by the SBP decreased by $1.245 billion over the course of the week. As a result, the central bank’s foreign currency holdings fell to $17.226 billion by July 10, compared with $18.471 billion recorded a week earlier.
The reduction in reserves was primarily attributed to repayments made against external liabilities, reflecting ongoing efforts by Pakistan to fulfill its international financial commitments. Debt servicing remains one of the key factors influencing the movement of the country’s foreign exchange reserves.
Despite the decline in the central bank’s holdings, Pakistan’s overall external liquidity position remained relatively stable. The country’s total liquid foreign exchange reserves were reported at $22.676 billion during the review period.
The latest reserve composition indicates that commercial banks held $5.450 billion in net foreign exchange reserves, while the remaining $17.226 billion was maintained by the State Bank of Pakistan. The banking sector’s foreign currency holdings helped support the country’s overall reserve position despite the drop in the central bank’s reserves.
Foreign exchange reserves play a critical role in maintaining economic stability, supporting the value of the national currency, financing imports, and meeting international payment obligations. Market participants closely monitor reserve levels as an indicator of a country’s external sector strength and its ability to manage financial shocks.
The latest weekly decline comes at a time when Pakistan continues to focus on strengthening its external account and improving foreign currency inflows through exports, remittances, and foreign investment.
While the weekly fall of $1.245 billion appears significant, it was largely driven by scheduled debt repayments rather than a deterioration in trade or remittance flows.
With total liquid reserves still above $22.6 billion and SBP reserves exceeding $17 billion, Pakistan retains a relatively comfortable external buffer.
However, sustaining reserve levels will depend on continued inflows, prudent debt management, and improvements in export earnings in the coming months.