Pakistan’s foreign exchange reserves rise to record $26.864bn

Pakistan’s total foreign exchange reserves reached a record $26.864 billion in the latest reported week, according to data released by the State Bank of Pakistan. The figure combines holdings of the central bank and commercial banks, and was $110 million higher than the previous week’s total of $26.754 billion.

The State Bank’s own reserves rose by $39 million during the week to $21.568 billion as of October 30. Commercial banks’ foreign exchange holdings increased by $70 million over the same period. Together, the two components produced the new reported national total.

The latest level marks a substantial rise from February, when the central bank’s reserves stood at $16.568 billion. The increase came during a period of regional uncertainty and higher oil-price risks linked to the Gulf conflict, which can affect Pakistan because oil imports are paid for in foreign currency.

Foreign exchange reserves are funds held in foreign currencies and related assets that can support external payments, including imports and debt obligations. A higher reserve position can improve the country’s ability to manage demand for foreign currency, but the reserve total alone does not show all pressure points in the wider external account.

Pakistan’s trade deficit during July to October of fiscal year 2026-27 was reported at $14.6 billion, with imports at $26 billion and exports at $11.4 billion. The gap between imports and exports remains relevant because it creates a continuing need for foreign-currency inflows from exports, remittances, investment, borrowing and other sources.

The report said the current reserve level has been viewed by parts of the financial sector as supportive of exchange-rate stability and exporter confidence. It also noted concerns raised by currency-market experts about the trade deficit and the balance between exchange-rate management, imports and remittances. Those assessments are views, rather than a formal policy announcement by the central bank.

The next reserve update will show whether the increase is sustained. For households and businesses, the most practical indicators to watch alongside reserves are the rupee’s movement, import costs, fuel prices, export receipts and remittance inflows, because these factors influence the availability and demand for foreign currency in the economy.