By Moaaz Manzoor

Pakistan's total liquid foreign exchange reserves increased to $22.74 billion during the week ended June 12, 2026, supported by a steady buildup according to official data released by the State Bank of Pakistan's (SBP).

The country's liquid foreign exchange reserves stood at $22.74 billion, comprising $17.22 billion held by the SBP and $5.52 billion maintained by commercial banks.

The latest figures reflect a continued improvement in Pakistan's external sector position. Total liquid reserves rose from $19.27 billion at the end of June 2025 to $21.33 billion by March 2026 before reaching $22.74 billion in mid-June. During the same period, the SBP's reserves increased from $14.51 billion to $17.22 billion.

The central bank remained the main contributor to the reserve accumulation, with its holdings increasing by about $2.72 billion over the past year. The growth reflects stronger foreign currency inflows and improved external account management.

On a weekly basis, SBP-held reserves maintained a gradual upward trend. The central bank's reserves increased from $17.08 billion on May 15 to $17.15 billion on May 22 and further to $17.19 billion on May 29. They rose to $17.22 billion by June 5 and remained at that level during the week ended June 12.

Similarly, total liquid foreign exchange reserves increased from $22.59 billion in mid-May to $22.74 billion by June 12, indicating continued stability in the country's foreign exchange position.

The latest reserve level represents a significant recovery from the lows recorded during FY2022-23, when Pakistan's total liquid foreign exchange reserves had fallen to $9.16 billion and SBP reserves had dropped to $4.45 billion amid severe external financing pressures.

Since then, the country's reserve position has improved steadily. Total liquid reserves increased to $14 billion by the end of FY2023-24 and further to $19.27 billion at the close of FY2024-25 before rising to the current level.

The strengthening reserve position has enhanced Pakistan's ability to meet external financing obligations, support exchange rate stability and maintain adequate foreign currency liquidity within the financial system.

The improvement comes amid stronger remittance inflows, higher foreign exchange earnings and continued efforts to strengthen the country's external account. The latest data suggest that Pakistan's reserve position remains on a gradual upward trajectory, providing a larger buffer against external shocks and improving confidence in the economy's external sector.

Credit: INP-WealthPk