Pakistan's total liquid foreign-exchange reserves fell by USD228 million to USD22.442 billion in the week ended July 24, 2026, as external debt repayments reduced the State Bank of Pakistan's holdings, interrupting the central bank's efforts to build reserves towards a projected USD20.20 billion by the end of December.

According to data released by the SBP on Thursday, the country's combined liquid reserves declined from USD22.669 billion a week earlier. The reduction was concentrated almost entirely at the central bank. SBP foreign-exchange reserves dropped by USD229 million to USD17.03 billion as of July 24, compared with USD17.259 billion on July 17. The central bank attributed the weekly decline to external debt repayments. Commercial banks provided a small offset. Their net foreign-exchange reserves increased marginally to USD5.412 billion from USD5.411 billion in the preceding week. The divergent movement meant that Pakistan's overall reserve stock declined by USD228 million even though commercial-bank holdings were broadly stable.

Despite the reduction, the country's total liquid foreign-exchange reserves remained above USD22 billion. The latest figures underscore the immediate effect of external debt servicing on official reserves. While commercial-bank holdings barely changed, repayments were sufficient to reduce the SBP's stock by USD229 million within a week. The central bank nevertheless expects its reserve position to strengthen considerably over the coming months. SBP Governor Jameel Ahmed has expressed confidence that reserves held by the central bank will rise to USD20.20 billion by the end of December 2026, supported by sufficient foreign inflows.

Reaching that level would require a substantial increase from the USD17.03 billion reported for July 24. The forecast therefore contrasts with the latest weekly movement: the SBP is projecting an increase in its foreign-exchange holdings over the coming months even as debt repayments continue to produce short-term fluctuations.

Pakistan entered the latest reporting week with total reserves of USD22.669 billion, including USD17.259 billion held by the central bank and USD5.411 billion with commercial banks. By July 24, combined holdings had declined to USD22.442 billion. The SBP's portion fell to USD17.03 billion, while banks' reserves edged up to USD5.412 billion. The composition of the decline makes external debt servicing the central feature of the latest reserve data. The immediate picture is consequently one of modest pressure rather than a broad-based reduction across the banking system. Commercial-bank reserves were essentially unchanged, whereas the central bank absorbed the effect of repayments.

The longer-term direction presented by the SBP is different. Governor Ahmed expects sufficient foreign inflows to lift the central bank's reserves to USD20.20 billion by the end of December. For Pakistan's foreign-exchange position, the latest figures therefore present two contrasting trends: debt repayments pulled official holdings down by USD229 million in a single week, while the central bank expects future inflows to lift its reserves by more than USD3 billion from their July 24 level by year-end.