SBP foreign exchange reserves rise by $1.2 bn to $18.33 bn
The State Bank of Pakistan reported a $1.2 bn increase in foreign exchange reserves for the week ended 4 September, bringing total reserves to $18.33 bn and liquid reserves to $23.72 bn.
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Desk Analysis
How This Affects the Exchange
Sector Effect
Positive · Buy bias
Higher reserves boost banking sector liquidity and market confidence – Buy bias on 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: HBL, MEBL, NBP. Higher reserves boost banking sector liquidity and market confidence – Buy bias on banks.
Full Story
Open on Dawn## Reserve Build‑up
The State Bank of Pakistan (SBP) announced on Thursday that its foreign exchange reserves grew by $1.2 bn during the week ending 4 September, reaching $18.328 bn.
## Source of the Increase
SBP attributed the rise to commercial loan proceeds received by the Government of Pakistan, reflecting higher inflows from external financing arrangements.
## Overall Liquidity Position
Including reserves held by commercial banks, the country's total liquid foreign exchange holdings stand at $23.715 bn, of which $5.387 bn are held by the banking sector.
## Market Implications
A stronger reserve buffer supports the rupee, reduces external financing risk and improves confidence among investors, particularly in the banking sector that benefits from higher liquidity and potential credit growth.