Pakistan foreign exchange reserves and remittances show growth

Pakistan’s foreign exchange reserves and remittance inflows showed growth in recent reporting periods. The State Bank of Pakistan (SBP) reported that its reserves increased by $15 million during the week ending October 2, 2026, reaching a total of $21.454 billion. When combined with $5.344 billion held by commercial banks, the country’s total liquid foreign exchange reserves stood at $26.798 billion.

In the first quarter of fiscal year 2026-27, workers’ remittances to Pakistan reached $10.9 billion, a 14% increase compared to the $9.5 billion recorded during the same period the previous year. In September 2026 alone, remittances totaled $3.6 billion, representing a 12.7% year-on-year increase, despite a 1.9% decline from August. Major contributors to these inflows included Saudi Arabia, the United Arab Emirates, the United Kingdom, and the United States.

The Institute of Cost and Management Accountants of Pakistan (ICMAP) noted that these inflows help cushion external-sector pressures and strengthen foreign exchange buffers. However, the institute cautioned that while remittances support economic stability and credit rating improvements, they cannot independently ensure long-term external-sector stability, especially as the current account moved from a surplus in FY2024-25 to a deficit in FY2025-26.