Pakistan's Foreign Exchange Reserves Rise to $23.72 bn
The State Bank of Pakistan reported a $1.18 bn weekly increase in liquid foreign exchange reserves, reaching $23.72 bn as of 4 Sept 2026, driven by government commercial loan inflows.
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Desk Analysis
How This Affects the Exchange
Sector Effect
Positive · Buy bias
Higher FX reserves boost banking sector confidence and market stability, creating a Buy bias for banks.
Sectors & Direction
Desk read
Desk call: Buy bias · Positively affected
- BanksPositively affected
- EconomyPositively affected
- MarketsPositively affected
Companies
Mentions in This Briefing
Sectors: Banks, Economy, Markets — Positive · Buy bias. PSX tickers: MEBL, MCB, UBL, HBL, BAHL, FABL. Higher FX reserves boost banking sector confidence and market stability, creating a Buy bias for banks.
Full Story
Open on Business Recorder## Weekly Reserve Build-up
The State Bank of Pakistan (SBP) released its weekly foreign exchange report on Thursday, showing that total liquid reserves climbed to $23.716 billion on 4 September 2026, up from $22.528 billion a week earlier.
## Sources of the Increase
The surge of $1.21 billion in the SBP’s reserve pool is attributed to the receipt of commercial loan proceeds from the Government of Pakistan. The report highlighted that these inflows boosted the central bank’s holdings from $17.118 billion to $18.328 billion within the same period.
## Commercial Bank Position
While the SBP’s reserves rose, net foreign reserves at commercial banks fell slightly, declining by $22.5 million to $5.388 billion.
## Targets and Outlook
SBP confirmed it had met its FY‑26 foreign‑exchange reserve target, surpassing the $18 billion benchmark by the end of June 2026. Looking ahead, the central bank has set a $20.20 billion reserve goal for December 2026.
## Market Implications
Higher reserves generally strengthen the rupee, lower external financing risk, and improve investor confidence, which can benefit banking stocks and overall market sentiment.