Pakistan’s total liquid foreign exchange reserves increased by $15 million over the past week, reaching $26.797 billion, the latest figures released by the State Bank of Pakistan (SBP) on Thursday.
The SBP’s own foreign exchange reserves rose to $21.4547 billion, while reserves held by commercial banks stood at $5.3437 billion, contributing to the overall total.
This growth in reserves follows the recent staff-level agreement between Pakistan and the International Monetary Fund (IMF) on the fourth review of the $7 billion Extended Fund Facility (EFF) and the third review of the Resilience and Sustainability Facility (RSF).
Announced on October 7, this agreement could unlock approximately $1.2 billion in additional financing for Pakistan, pending approval by the IMF Executive Board. The expected disbursement includes about $1 billion under the EFF and roughly $210 million under the RSF, which would bring total funds received under these programs to around $5.7 billion.
An IMF delegation led by Iva Petrova conducted discussions with Pakistani officials in Karachi and Islamabad from September 23 to October 7 as part of the 2026 Article IV consultation and the reviews of the two programs.
The IMF noted that despite a challenging external environment, Pakistan’s implementation of the EFF program has remained broadly on track, with ongoing efforts on climate-related reforms under the RSF.
Pakistan has effectively managed the economic impact of the Middle East conflict with support from the EFF, and its policies have helped maintain macroeconomic stability. Real GDP growth reached 4 percent in the first three quarters of fiscal year 2026, with an estimated full-year growth of 3.6 percent.
However, higher energy prices and supply disruptions have somewhat slowed economic momentum. Headline inflation, which peaked in May, eased to approximately 10.3 percent in September.
The current account remained broadly balanced during FY26, supported by strong remittances, while gross foreign exchange reserves increased to about $21.5 billion by the end of September.
The IMF also highlighted that sovereign rating upgrades and renewed access to international markets reflect improved policy credibility. Nonetheless, it cautioned that risks to Pakistan’s economic outlook remain elevated due to geopolitical tensions, volatile energy prices, tighter global financial conditions, and trade disruptions.
This latest rise in reserves underscores Pakistan’s ongoing efforts to strengthen its external position under the IMF program, with higher reserves providing a vital buffer against external financing challenges and balance-of-payments pressures.
