SBP Reserves Post Slight Weekly Increase to Clock in at $14.38 Billion

SBP reserves edge up to $14.38 billion

Pakistan’s foreign exchange reserves with the State Bank SBP Reserves nudged up this week, landing at about $14.38 billion. That’s an increase of just $22 million compared to the week before. Not a game-changer, but at least it is moving in the right direction.

If you add in what commercial banks are holding, the country’s total reserves now come to roughly $19.79 billion, with a little over $5.4 billion of that sitting with the private banks. The SBP continues to carry the bigger chunk.

Why it matters

Even a small bump in reserves is a relief for a country like Pakistan, where dollar inflows and outflows are always under the microscope. A few months back, the SBP was buying dollars more aggressively from the interbank market, but dealers say it’s slowed things down recently to keep the rupee from taking too much heat.

Also Read:SBP Warns Floods Could Challenge Pakistan’s Economic Recovery

The bigger picture hasn’t really changed: imports are still heavy, exports are struggling to keep pace, and the current account has a habit of slipping into deficit. If that keeps up, it could eat into the gains we’ve just seen.

The balancing act

The reserves cushion is important for a lot of reasons. It helps pay for imports, service foreign debt, and reassures lenders that Pakistan can keep its commitments. Right now, being above the $14 billion line is at least a signal of some breathing room.

The catch is how fragile this cushion can be. A dip in remittances, a delay in external financing, or a jump in global oil prices could quickly change the story. Fitch and other watchers have already pointed out that external financing remains one of Pakistan’s biggest risks, despite some economic progress earlier this year.

What’s next

Sustaining reserves isn’t just about one good week. It’ll come down to whether the government can manage imports smartly, keep borrowing costs under control, and push exports beyond the usual low-value items. Regular inflows from lenders and friendly countries also play a big part.

For now, the SBP seems to be playing it safe, adding a little to its stockpile without rocking the currency market. It’s not the kind of surge that changes everything, but in Pakistan’s current context, even a modest increase is better than the alternative.