Key Points
- Total liquid foreign reserves: $22.636 billion, as of May 29, 2026
- State Bank of Pakistan reserves: $17.190 billion, up $43 million or 0.25% week-on-week
- Commercial banks’ reserves: $5.446 billion, unchanged
ISLAMABAD: Pakistan’s total liquid foreign exchange reserves stood at $22.636 billion as of May 29, 2026, showing a stable external position with a slight improvement in holdings managed by the State Bank of Pakistan.
The State Bank of Pakistan reported that its foreign exchange reserves increased by $43 million over the week, reaching $17.190 billion.
The nominal increase of 0.25 per cent reflects minor inflows and routine external account movements, with no major volatility observed during the reporting period.
Net foreign reserves held by commercial banks remained steady at $5.446 billion, leaving the country’s total liquid foreign reserves unchanged at $22.636 billion.
Total liquid foreign #reserves held by the country stood at US$22.64 billion as of May 29, 2026.
For details: https://t.co/WpSgomnKT3#SBPReserves pic.twitter.com/4MxuBgwK52— SBP (@StateBank_Pak) June 4, 2026
Overall, the weekly movement indicates stability in Pakistan’s external buffers, with the marginal increase in central bank holdings offset by flat commercial bank reserves.
According to reports. Pakistan also recorded a significant narrowing of its trade deficit in May 2026, with exports posting steady growth and imports declining sharply, indicating improved external account dynamics.
Official data indicated that the trade deficit contracted by 39 per cent during the month under review.
Exports increased by 10 per cent compared to the previous month, supported by improved performance in key manufacturing and textile categories. Gradual diversification in select export segments also improved export momentum.
Imports declined by 22 per cent, reflecting lower demand for certain input goods, and continued policy efforts to manage external pressure.
The combined movement in exports and imports resulted in a notable reduction in the overall trade gap, easing pressure on foreign exchange reserves and external financing needs.
Economic officials linked the process of stabilising external indicators to overall macroeconomic adjustments in recent months.
Analysts note that the improvement in the trade balance reflects both demand compression due to import management measures and a gradual recovery in export competitiveness.
However, they caution that sustaining export growth will require continued policy support and industrial stability.
The trend is expected to remain under close observation in the coming months as policymakers assess its impact on growth, inflation, and external financing requirements.
