Pakistan’s total liquid foreign exchange reserves climbed to USD 21.09 billion as of December 12, 2025, marking a significant improvement in the country’s external buffers and strengthening its import cover to 2.62 months of goods and services. This rise comes amid renewed confidence in Pakistan’s external position following key international funding inflows.

According to data released by the State Bank of Pakistan (SBP), foreign currency reserves held by the central bank rose by $1.30 billion week-on-week to $15.89 billion, while net foreign reserves with commercial banks stood at $5.20 billion, taking total liquid reserves to $21.09 billion. The SBP said the weekly increase in its reserves was mainly due to the receipt of SDR 914 million, equivalent to about $1.2 billion, from the IMF under the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF).

Pakistan’s import cover rose from around 2.41 months to 2.62 months. This improvement reflects a stronger external position after months of concerted efforts to stabilise the country’s balance of payments and rebuild FX buffers.

To manage liquidity and support broader financial stability, the SBP injected more than Rs983 billion into the banking system through a mix of conventional and Shariah-compliant open market operations (OMOs). These injections help ensure that domestic credit and liquidity conditions remain smooth even as external inflows support reserve accumulation.

Also, the Pakistani rupee saw a slight stabilisation against the US dollar, closing virtually unchanged at Rs280.26 in the interbank market, reflecting cautious confidence among market players.

Meanwhile, gold prices in Pakistan rose, tracking global upward movements in precious metals markets driven partly by positive US inflation news and seasonal demand trends.

Credit: Independent News Pakistan (INP)