Central bank holdings rise $13m as total deposits reach $21b; 2026 starts with softer bullion prices
KARACHI:
Pakistan’s liquid foreign exchange reserves saw a modest increase in the final week of 2025, with the State Bank of Pakistan (SBP) reporting a $13 million rise in its holdings.
As of December 26, 2025, the SBP’s foreign currency reserves stood at $15.915 billion, up from $15.902 billion in the previous week. Net reserves held by commercial banks dipped slightly to $5.097 billion, resulting in total liquid foreign reserves of $21.012 billion.
This brings the country’s import cover to an estimated 3.2 months, providing a stable buffer amid ongoing external payments and debt obligations, according to AKD Securities.
Over the past three years from 2023 to 2025, the SBP’s reserves have shown a profound transformation, moving from the brink of crisis to a position of notable recovery and stability. In early 2023, the reserves plummeted to critically low levels, dipping below $3 billion in February, barely enough to cover a few weeks of imports, amid high debt repayments, stalled external financing, and severe balance-of-payments pressures that brought the country perilously close to sovereign default. This nadir reflected years of structural challenges, including elevated import bills and restricted inflows, with import cover falling below one month at its worst.
The turning point came in mid-2023 with the approval of a nine-month, $3 billion Stand-By Arrangement from the IMF in July, supplemented by bilateral support from allies like Saudi Arabia, the UAE, and China, alongside improved remittances and export performance. The reserves began a gradual climb, reaching around $4.5 billion by June 2023 and approximately $8-9 billion by year-end, steadily improving import cover and easing immediate liquidity risks.
Meanwhile, gold prices in Pakistan edged lower on Thursday, tracking losses in the global bullion market. In the domestic market, the price of gold per tola fell by Rs2,400 to settle at Rs454,562.
