By Moaaz Manzoor

Pakistan’s total liquid foreign exchange reserves fell to $20.52 billion by the week ended April 10, 2026, according to data released by the State Bank of Pakistan (SBP).

The central bank’s data showed that total reserves stood at $20,524.5 million, down from $21,894.9 million a week earlier, reflecting a decrease of about $1.37 billion. The reserves comprise $15.08 billion held by the SBP and $5.45 billion held by commercial banks.

During the week ended April 10, SBP’s foreign exchange reserves decreased by $1.32 billion to $15,079.5 million, marking a notable weekly decline in the country’s external buffers.

The latest drop follows a period of relative stability and gradual buildup in reserves through March and early April. SBP data indicates that total liquid reserves had increased steadily in recent weeks, reaching $21.89 billion by April 3, before reversing course in the latest reporting period.

Meanwhile, the State Bank of Pakistan received funds of US$2 billion from the Ministry of Finance, Kingdom of Saudi Arabia, on the value date of 15 April 2026.

The inflow is expected to provide immediate support to the country’s foreign exchange reserves and ease pressure on the external account following the recent decline.

Market participants said the decrease in reserves was largely linked to external debt repayments, including payments related to sovereign obligations, which continue to weigh on the overall reserves position.

Earlier, Finance Minister Muhammad Aurangzeb informed that the Kingdom of Saudi Arabia had committed $3 billion in additional deposits, with disbursement expected in the coming week. He further stated that the existing $5 billion Saudi deposit would no longer remain subject to the earlier annual rollover arrangement and would instead be extended for three years.

A Saudi Ministry of Finance spokesperson also confirmed to Reuters that the Kingdom has agreed to provide $3 billion to Pakistan to support its balance of payments.

Pakistan’s external position remains under pressure due to ongoing repayment obligations. The country is facing a $3.5 billion repayment to the United Arab Emirates (UAE) this month, which represents a significant portion of its foreign exchange reserves.

Despite the latest decline, reserves remain higher than levels seen earlier in the fiscal year. However, analysts say continued reliance on external inflows and rollovers highlights underlying vulnerabilities in the country’s balance of payments and the need for sustained improvement in external earnings.

Credit: INP-WealthPk