Pakistan's foreign exchange reserves held by the State Bank of Pakistan (SBP) declined by $1.3 billion during the week ended June 19, 2026, primarily due to scheduled external debt repayments. However, the central bank expects the decline to be largely offset by significant inflows that will be reflected in the June-end reserve position.

According to the SBP, its foreign exchange reserves fell by $1.3046 billion, or 7.58% week-on-week, to $15.92 billion from $17.22 billion a week earlier.

The central bank attributed the decline mainly to external debt servicing obligations. It added that, following the reporting week, Pakistan received approximately $700 million from a multilateral institution along with around $1.7 billion through the refinancing of a government commercial loan. These inflows will be incorporated into the official foreign exchange reserves as of June 30, 2026.

The country's total liquid foreign exchange reserves also declined by $1.257 billion, or 5.53%, to $21.48 billion during the week. In contrast, foreign exchange reserves held by commercial banks increased by $47.6 million to $5.57 billion.

Despite the weekly decline, Pakistan's external position has strengthened over the course of the current fiscal year. Since the beginning of FY2025-26, SBP-held reserves have increased by $1.41 billion, representing a growth of nearly 10%.

Separately, the central bank's monthly data showed that foreign exchange reserves rose to $17.19 billion at the end of May 2026, an increase of $1.34 billion compared to April. On a year-on-year basis, SBP reserves expanded by $5.67 billion, reflecting an increase of more than 49%.

Pakistan's total liquid foreign exchange reserves stood at $22.11 billion at the end of May, up by $1.31 billion from the previous month and more than $6 billion higher than the same period last year.

The expected inflows at the end of June are likely to reverse most of the recent weekly decline, supporting Pakistan's external account stability and strengthening investor confidence as the country continues to manage its external financing obligations.