KARACHI: Pakistan’s total liquid foreign exchange reserves declined by more than $1.25 billion during the week ended June 19, 2026, primarily due to external debt repayments made by the State Bank of Pakistan (SBP).
According to the SBP’s latest weekly statement, the country’s total liquid foreign exchange reserves stood at $21.4847 billion, down from $22.7417 billion a week earlier.
The central bank’s reserves recorded the sharpest decline, falling by $1.305 billion to $15.9164 billion from $17.221 billion during the previous week. The SBP said the decrease was mainly attributable to the repayment of external debt obligations.
However, the central bank noted that Pakistan has subsequently received $700 million from multilateral institutions, along with approximately $1.7 billion through the refinancing of a government commercial loan.
According to the SBP, these inflows will be reflected in the foreign exchange reserves data for the week ending June 30, 2026, providing a significant boost to the country’s external position.
Meanwhile, foreign exchange reserves held by commercial banks continued their upward trend. Their reserves increased by $47.6 million, reaching $5.5683 billion, compared with $5.5207 billion in the previous week.
The latest data suggests that while external debt servicing continues to weigh on Pakistan’s foreign exchange reserves, fresh multilateral financing and commercial loan refinancing are expected to improve the country’s reserve position in the upcoming reporting period.
