SBP Foreign Reserves Rise by $12 Million, Reach $14.59 Billion. Pakistan recorded another improvement in its external financial position this week as the State Bank of Pakistan (SBP) reported a rise in liquid foreign exchange reserves. The latest update reflects continued stability in the country’s short-term payment capacity.
SBP Reserves Increase to $14.59 Billion
The SBP announced that its liquid foreign reserves increased by $12 million, reaching $14.59 billion for the week ending December 5, 2025.
Although the weekly increase is small, it signals a steady trend that has continued over recent months.
Total Forex Reserves Reach $19.612 Billion
Pakistan’s total foreign exchange reserves climbed to $19.612 billion, supported by a similar increase in commercial bank holdings.
Banks added $12 million, pushing their reserves to $5.026 billion by the end of the week.
This combined growth reflects stability in overall foreign exchange management, even during a period of tight global liquidity.
Import Cover Remains Stable at 2.77 Months
SBP data shows that Pakistan’s import cover stayed unchanged at 2.77 months.
This figure measures how long the country can sustain essential imports using its existing reserves and is a key indicator of external financial health.
A stable import cover means Pakistan currently maintains enough reserves to manage short-term payments without immediate pressure.
Year-to-Date Growth Crosses $2.8 Billion
One of the most positive developments is the strong year-to-date performance.
The SBP’s reserves have increased by $2.876 billion since January, driven by:
- Better foreign inflows
- Careful external debt payments
- Improved current account discipline
- Stable global support
This steady build-up strengthens the country’s financial buffers and supports confidence in currency and trade stability.
Economic Significance of the Latest Increase
Even small weekly increases matter for an economy like Pakistan’s.
Stable reserves reduce pressure on the rupee, improve investor sentiment, and help the government meet external obligations without stress.
Economists believe that continued discipline combined with controlled imports and steady inflows—can help Pakistan maintain this positive trajectory.
Conclusion
Pakistan’s latest foreign exchange data shows a slow but consistent improvement in external reserves. With SBP holdings rising to $14.59 billion and total reserves reaching $19.612 billion, the country has strengthened its import cover and external buffers as 2025 draws to a close.
If this trend continues, Pakistan may enter 2026 with improved stability and better room to manage economic challenges.
