ISLAMABAD — The country’s total liquid foreign-exchange reserves rose by US$39 million for the week ended 7 November 2025, reaching US $19.724billion, according to the latest weekly update from the State Bank ofPakistan (SBP). This compares with US $19.664 billion held a week earlier.Key figures at a glance
– Week ended 7 November 2025: US $19.724 billion – Previous week: US $19.664 billion
What this means
The uptick, though modest, signals a continuation of relative stability inPakistan’s external-liquidity buffer. It implies that net foreign-exchangeinflows (or limited outflows) have enabled the reserves to edge higher.Moderate increases like this may help shore up confidence in the externalsector, though by themselves they are not a dramatic shift.Context and implications
After the severe external-sector stress of recent years — when reservesplunged to critical levels and import coverage became a serious concern —even small gains are noteworthy in terms of stabilising sentiment. Forexample, earlier this year, data showed …
“The country’s total liquid foreign exchange reserves stood at US $19.50billion as of 8 Aug 2025.”
However, despite the improvement, the reserve level still prompts questions:
Read Top Stories
– Import-cover adequacy: The number of months of imports the reserve level can cover is a key metric. While higher than crisis lows, Pakistan’s import-cover remains limited compared to more advanced peers. – External obligations: The ability of the SBP and the wider economy to service external debt, withstand currency shocks, and absorb global market volatility remains linked to the pace of reserve accumulation or depletion. – Sustainability: The rise should ideally reflect fundamentals — such as export strength, remittance inflows, foreign direct investment (FDI) — rather than new borrowing or short-term stop-gaps, which may create longer-term vulnerabilities.
Outlook
Going forward:
– If reserves continue to inch upwards, this may provide more cushion to the SBP and the economy. – Conversely, any sharp outflows — for example repayment obligations or sudden drop in remittances/exports — could quickly reverse gains. – Market participants may watch for communications from the SBP about the composition of the reserves, anticipated inflows, and potential pressures on the external side of the economy. – Given modest size of the increase, the key question is whether it heralds the start of a sustained trend or remains a one‐off.
The latest weekly data offers a positive, albeit cautious, incrementaladvance for Pakistan’s external buffer. It reflects modest improvement butthe broader health of the external sector will depend on continueddisciplined policy, favourable inflows and steady export and remittanceperformance.