Pakistan's liquid foreign-exchange reserves fell sharply by USD1.26 billion in the week ended June 19, 2026, as external debt servicing drove the State Bank of Pakistan's holdings below USD16 billion, although USD2.4 billion in subsequent external inflows is expected to offset the decline. According to the SBP's weekly foreign-exchange reserves report, the country's total liquid holdings dropped to USD21.485 billion as of June 19 from USD22.746 billion a week earlier.

The deterioration was concentrated entirely in the central bank's reserves, while foreign currency held by commercial banks increased slightly during the period. SBP reserves declined by USD1.305 billion to USD15.916 billion, compared with USD17.221 billion on June 12. The fall pushed the central bank's holdings below the USD16 billion threshold and accounted for more than the overall reduction in Pakistan's liquid reserves, given the small increase recorded by commercial banks.

External debt servicing was identified as the principal reason for the sharp weekly decline. The latest figures therefore show how debt repayments can quickly affect the central bank's foreign-exchange position, with more than USD1.3 billion removed from SBP holdings within a single week. The decline is, however, expected to prove temporary to some extent. Pakistan subsequently received USD2.4 billion in external inflows, which are expected to be reflected in the SBP's foreign-exchange reserves report for the week ending June 30, 2026. Those receipts exceed the USD1.305 billion reduction recorded in the central bank's holdings during the week under review. The timing is significant because the June 19 data do not yet incorporate those subsequent inflows. The reported USD15.916 billion in SBP reserves therefore represents the position before the additional USD2.4 billion is reflected in the central bank's figures.

Pakistan's overall liquid reserves similarly stood at USD21.485 billion at the end of the reporting week, down from USD22.746 billion seven days earlier. The figures show a pronounced divergence between the central bank and commercial lenders. Whereas SBP holdings bore the full impact of external debt servicing, reserves maintained by commercial banks edged higher. The immediate picture is consequently one of a substantial but potentially short-lived deterioration in official reserves.

The central bank's stock fell from USD17.221 billion to USD15.916 billion in one week as debt obligations were serviced, dragging the country's combined liquid holdings down by USD1.26 billion. Yet the subsequent USD2.4 billion in external receipts points towards a sizeable reversal when the later reporting period is incorporated. For Pakistan's foreign-exchange position, the sequence highlights the volatility that can accompany large external payments and receipts. The June 19 report records a steep debt-driven drawdown; the next relevant figures are expected to capture an inflow almost twice the size of that weekly decline.