Pakistan’s Foreign Exchange Reserves Rise to $26.86 Billion — Near a Record High

Pakistan’s foreign exchange reserves rose by $110 million in a single week to reach $26.86 billion, the State Bank of Pakistan (SBP) said on Thursday, 5 November 2026. It is the third weekly increase in a row, and it takes the country’s total reserves to within touching distance of their all-time high.

The steady rise is good news for Pakistan’s economy. Just a few years ago, the country came dangerously close to running out of foreign currency. Today, the central bank’s own reserves have grown by more than $3 billion since June. Here is what the new figures show, what foreign exchange reserves actually are, and why they matter for every Pakistani.

What happened

The State Bank releases its reserves figures every week. The latest numbers, for the week ended 30 October 2026, show increases across the board:

• Reserves held by the State Bank rose by $39 million to $21.56 billion, up from $21.52 billion a week earlier.
• Reserves held by commercial banks rose by $70.8 million to $5.30 billion, up from $5.23 billion.
• Total liquid foreign exchange reserves — the two figures added together — rose by $110.3 million to $26.86 billion, up from $26.75 billion.

This is the third consecutive week in which the central bank’s reserves have risen. The figures were reported by The News and other Pakistani outlets after the State Bank released its weekly statement on Thursday.

The total is now close to Pakistan’s all-time record. The highest total reserves Pakistan has ever held were about $27.06 billion, recorded in August 2021. At $26.86 billion, the country is now only about $200 million short of that peak.

What are foreign exchange reserves, in simple words?

Foreign exchange reserves are the stock of foreign currency — mostly US dollars — that a country’s central bank and its commercial banks hold. Think of them as the country’s savings account in foreign money.

A country needs foreign currency for several everyday reasons:

• Paying for imports. Pakistan buys oil, gas, machinery, medicines and many other goods from abroad, and those bills are paid in dollars, not rupees.
• Paying back foreign loans. Pakistan owes money to foreign lenders, and repayments are made in foreign currency.
• Keeping the rupee steady. When the central bank has plenty of dollars, it can step in to stop the rupee from falling too fast.
• Showing the world the economy is stable. Lenders, investors and ratings agencies all look at reserves as a sign of whether a country can pay its bills.

When reserves fall too low, a country can struggle to pay for imports — including fuel — and the currency can come under severe pressure. Pakistan learned this the hard way in 2022 and 2023, when reserves fell to levels that covered only a few weeks of imports. That is why every weekly increase now is watched so closely.

How Pakistan built the reserves back up

The latest figures are part of a longer recovery that has been building since the summer. According to Topline Securities, the State Bank’s reserves have risen by $3.18 billion since June 2026 — from $18.38 billion to $21.56 billion.

One of the main ways the central bank has built up its stockpile is by buying dollars from the market. The News reported that the State Bank bought $863 million from the interbank market in July, up from $841 million in June. When the central bank buys dollars in this way, it adds to its reserves while also keeping the supply of dollars in the market balanced.

Remittances from overseas Pakistanis, export earnings and loans from international lenders also feed into the reserves. The State Bank has not given a detailed breakdown of where this particular week’s $39 million increase came from, and its weekly statement does not usually name the sources. But the steady upward direction over several months shows the improvement is not a one-week accident.

The central bank has also set out its targets. SBP Governor Jameel Ahmad has said the bank expects its reserves to reach $23 billion by December 2026 and $25 billion by June 2027. If the current pace continues, those targets look within reach.

What does “import cover” mean — and why 3.93 months matters?

One figure in the new data deserves a closer look: import cover. This measures how many months of imports the country’s reserves could pay for if all other income suddenly stopped.

Import cover has now risen to 3.93 months, up from 3.92 months a week earlier. That may sound like a small change, but it is an important milestone. Economists generally consider three months of import cover to be the minimum safe level. Pakistan is now comfortably above that line, with nearly four months of breathing room.

A higher import cover means the country is less likely to face a sudden shortage of dollars to pay for fuel, food and medicine. It also gives the government and the central bank more room to manage the economy without emergency measures.

What this means for ordinary Pakistanis

Foreign exchange reserves can sound like an abstract number that only bankers care about. In reality, they affect daily life in several ways:

A steadier rupee. When reserves are healthy, the rupee is less likely to fall sharply against the dollar. A stable rupee helps keep the prices of imported goods — from petrol to cooking oil to medicines — from rising suddenly.

Cheaper imports, eventually. Pakistan imports most of its fuel. If the country can pay for oil comfortably, there is less pressure for sudden fuel price shocks. The link is not instant, and global oil prices still matter most, but a strong reserves position removes one source of pressure.

Confidence for businesses. Importers and manufacturers need dollars to buy raw materials and machinery. When banks have enough foreign currency, businesses can plan and invest instead of worrying about whether they will get the dollars they need.

Room to breathe. Perhaps most importantly, healthy reserves mean Pakistan is less likely to need emergency help from lenders, and less likely to face the kind of crisis that leads to sudden tax rises or spending cuts.

None of this means the economy’s problems are solved. Reserves are only one measure of economic health, and Pakistan still faces high inflation, a large debt burden and the need to grow exports. But a rising reserves pile is a genuine improvement, and it is one of the few economic numbers that has moved steadily in the right direction this year.

What happens next

Three things are worth watching in the coming weeks:

1. The December target. The State Bank expects its own reserves to reach $23 billion by the end of December 2026. That would need roughly $1.4 billion more over the next two months — a big jump, but one the central bank has said it expects to make.

2. The record high. Total reserves are about $200 million below the August 2021 record of $27.06 billion. If the weekly increases continue, Pakistan could set a new record before the end of the year.

3. Where the dollars come from. The reserves have grown without a detailed public breakdown of the sources in each weekly statement. What matters for the long term is whether the growth comes from lasting sources — exports, remittances and investment — rather than short-term borrowing. That is the question economists will keep asking.

For now, though, the direction is clear. Pakistan’s foreign exchange reserves have risen for three weeks in a row, they stand near their highest ever level, and the central bank expects them to keep growing. After the crises of recent years, that is news worth noting.

Frequently asked questions

How much are Pakistan’s foreign exchange reserves now?

Pakistan’s total liquid foreign exchange reserves stood at $26.86 billion on 30 October 2026, according to the State Bank of Pakistan. That includes $21.56 billion held by the State Bank itself and $5.30 billion held by commercial banks.

How much did reserves rise this week?

Total reserves rose by $110.3 million in the week ended 30 October 2026. Reserves held by the State Bank rose by $39 million, and reserves held by commercial banks rose by $70.8 million.

What is Pakistan’s highest ever reserves level?

Pakistan’s total foreign exchange reserves peaked at about $27.06 billion in August 2021. The current level of $26.86 billion is only about $200 million below that record.

What is import cover, and how many months does Pakistan have?

Import cover measures how many months of imports the country’s reserves could pay for. Pakistan’s import cover is now 3.93 months, up from 3.92 months a week earlier. Economists generally see three months as the minimum safe level.

How much have reserves grown since June 2026?

Reserves held by the State Bank have risen by $3.18 billion since June 2026, from $18.38 billion to $21.56 billion, according to Topline Securities.

What is the State Bank’s target for reserves?

SBP Governor Jameel Ahmad has said the central bank expects its reserves to reach $23 billion by December 2026 and $25 billion by June 2027.

Sources

• The News, “SBP forex reserves rise by $39m to $21.56bn as of October 30”, 6 November 2026: https://www.thenews.pk/print/1447039-sbp-forex-reserves-rise-by-39m-to-21-56bnas-of-october-30
• PKRevenue, “SBP foreign exchange reserves rise by $40 million to $21.56 billion”, 5 November 2026: https://pkrevenue.com/sbp-foreign-exchange-reserves-rise-by-40-million-to-21-56-billion/
• The Scoop, “Pakistan’s total foreign exchange reserves near historic peak at $26.86 billion”, 6 November 2026: https://thescoop.com.pk/pakistans-total-foreign-exchange-reserves-near-historic-peak-at-26-86-billion/
• Pakistan Digital, “SBP reserves up $40 million, commercial banks nearly double”, 6 November 2026: https://pakistandigital.pk/en/news/sbp-reserves-up-40-million-commercial-banks-nearly-double-november-6-2026

This article is for general information and education only. It is not legal or financial advice.