SBP-held foreign exchange reserves rise by $1.21 bn to $18.33 bn
The State Bank of Pakistan reported a $1.21 bn increase in its foreign‑exchange reserves, taking the SBP‑held total to $18.33 bn, driven mainly by government commercial loan proceeds.
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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, suggesting a Buy bias on major 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, UBL. Higher reserves boost banking sector liquidity and market confidence, suggesting a Buy bias on major banks.
Full Story
Open on Business Recorder## Reserve buildup
The State Bank of Pakistan (SBP) announced that its foreign‑exchange reserves grew by US$1.21 billion during the week ended 4 September 2026, reaching US$18.33 billion. The weekly reserves statement showed that total liquid foreign‑exchange reserves stood at US$23.72 billion.
## Source of the increase
SBP attributed the rise to the receipt of commercial loan proceeds from the Government of Pakistan. No other inflows or market operations were cited.
## Bank holdings
Commercial banks in the country hold a net foreign‑exchange reserve of US$5.39 billion, providing them with additional liquidity buffers.
## Recent trend
The previous week’s statement had recorded a modest increase of US$19 million, taking the SBP‑held reserves to US$17.12 billion. The latest jump therefore marks a significant step‑up in reserve accumulation.
## Market implications
Higher foreign‑exchange reserves strengthen Pakistan’s external position, support the rupee, and improve the credit profile of the banking sector. Investors may view the improved buffer as a positive signal for financial stability and future credit growth.