Pakistan's foreign exchange reserves recorded a sharp weekly decline after external debt repayments reduced the central bank's holdings, although authorities expect the setback to be reversed by subsequent external inflows scheduled to appear in the next reporting period. According to the State Bank of Pakistan (SBP), the country's liquid foreign exchange reserves fell by US$1.26 billion during the week ended June 19, 2026, with the decline attributed primarily to external debt servicing.

The central bank indicated, however, that the reduction is expected to be offset by US$2.4 billion in external inflows received after the reporting period. Those receipts will be reflected in the SBP's foreign exchange reserves statement for the week ending June 30, 2026.

The SBP's weekly reserves report showed that Pakistan's total liquid foreign exchange reserves stood at US$21.485 billion as of June 19, 2026, compared with US$22.746 billion a week earlier, representing a decline of US$1.26 billion. The fall was concentrated entirely in the central bank's holdings, while foreign exchange reserves maintained by commercial banks registered a slight increase during the same period.

According to the SBP, its own reserves declined by US$1.305 billion over the week to US$15.916 billion, falling below the US$16 billion threshold after standing at US$17.221 billion a week earlier. The latest figures illustrate the continued impact of external debt servicing on Pakistan's foreign exchange position. However, the SBP expects the subsequent inflow of US$2.4 billion to strengthen reserve levels in the following reporting cycle, partially reversing the week's decline.