KARACHI: The State Bank of Pakistan’s (SBP) foreign exchange reserves rose by $21 million to $14.4bn during the week ended Sept 26, continuing a gradual upward trend.

However, the total remains below the level recorded at the close of FY25.

Despite the slow buildup, the steady rise in reserves has helped support the exchange rate, with the rupee appreciating by a few paise daily against the US dollar over the past two months.

The SBP has been purchasing dollars from the interbank market, though in smaller volumes than previous episodes. This lighter intervention has helped maintain market liquidity, allowing foreign investors to repatriate profits and dividends more easily. Outflows under this head reached $592m during July-August FY26, compared to $274m in the same period last year.

While exchange rate stability has improved, the government has struggled to attract foreign investment and remains unable to offload loss-making state-owned assets. A $500m Eurobond repayment made earlier this week was facilitated by continued strong remittance inflows.

According to SBP data, total liquid foreign exchange reserves stood at $19.8bn as of September 26, with commercial banks holding $5.4bn.

Published in Dawn, October 3rd, 2025