Pakistan's foreign exchange reserves hit record $26.86 billion as State Bank holdings climb to $21.56 billion
Pakistan's total liquid foreign exchange reserves reached a record $26.864 billion in the week ended 30 October, the State Bank said, with its own holdings rising to $21.561 billion despite the Gulf war's strain on the economy.
Pakistan's foreign exchange reserves have climbed to a record high of more than $26.8 billion, the State Bank of Pakistan said on Thursday, as the central bank's own holdings kept rising steadily despite the strain the Gulf war has placed on the economy.
Total liquid foreign exchange reserves reached $26.864 billion in the week ended 30 October, up $110 million from $26.754 billion a week earlier, according to the central bank's weekly statement. Figures were checked on 6 November 2026.
Reserves held by the State Bank itself rose by $39 million during the week to $21.561 billion, while the foreign exchange held by commercial banks increased by $71 million to $5.303 billion, the statement showed.
The latest figures extend a climb that began earlier this year. The State Bank's reserves stood at $16.568 billion in February and have added more than $5 billion since then, even as the war that began on 28 February jolted weaker economies and left oil prices uncertain.
The financial sector considers the current level of reserves sufficient to keep the exchange rate stable and to encourage exporters to bring their proceeds home without delay. A steady exchange rate also gives importers confidence to plan their purchases, bankers say.
Currency experts, however, sound a note of caution. They believe the rupee is overvalued, which lets importers buy cheaper dollars and helps explain why the trade deficit keeps widening month after month.
The numbers bear that out. The trade deficit for July to October of the current fiscal year reached $14.6 billion, with imports of $26 billion against exports of $11.4 billion, according to the figures reported alongside the reserves data.
Some experts also argue that the stable exchange rate is being maintained at the expense of remittances, which have been rising each year. Neither the government nor the State Bank has devised a policy to put remittances to better use, they say; instead, the inflows are largely used to fill the trade gap.
The reserves build-up has been supported by backing from friendly countries. Saudi Arabia has rolled over its $3 billion financing facility, while China and Kuwait have assured a further $4.3 billion in loan rollovers, and a $3 billion Eurobond raised earlier in the year also strengthened the central bank's position.
Looking ahead, the State Bank expects its own reserves to rise to $23 billion by the end of December 2026 and to $25 billion by June 2027. Import cover now stands at about 3.93 months, giving the economy a somewhat thicker cushion against external shocks.
What happens next will depend on the weekly reserves statements, the direction of the trade deficit, oil prices while the Gulf war continues, and whether remittance inflows keep growing. For now, the record headline gives the government room to argue that its external position is steadier than it was at the start of the year.
This post is market news information only, not financial advice.
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