According to the latest figures released by the State Bank of Pakistan (SBP), foreign currency deposits in the country increased by $31.31 million, a 0.45 % rise, to reach $6.966 billion in September 2026. The data, part of the bank’s monthly statistical bulletin, highlights a modest but steady growth in the sector as investors continue to hold international currencies in Pakistani banks.
The September total represents a 0.45 % increase over the $6.935 billion recorded in August, marking a slight uptick from the previous month. While the rise is modest, it underscores a gradual strengthening of the foreign currency deposit base, which has been a key component of Pakistan’s external reserves management.
When compared to the same month in the previous year, September 2026 deposits remain $89.66 million, or 1.27 %, below the $7.056 billion recorded in September 2025. This year‑on‑year decline suggests that the growth pace has moderated, despite the recent uptick in monthly figures.
Resident foreign currency deposits also showed a rise in September, reflecting increased confidence among local investors and expatriates who prefer holding foreign assets for hedging or investment purposes. Although the precise increase is not disclosed in the summary, the trend aligns with the overall growth in foreign currency holdings.
The upward movement in foreign currency deposits is significant for Pakistan’s financial stability, as it bolsters the country’s ability to meet external obligations and provides a cushion against volatile exchange rates. The SBP’s data indicate that banks are increasingly accommodating foreign currency accounts, which can enhance liquidity and support foreign trade financing.
Economists note that a steady rise in foreign currency deposits can also signal growing foreign direct investment inflows and an improved perception of Pakistan’s macroeconomic environment. However, the year‑on‑year shortfall points to ongoing challenges, such as inflationary pressures and external debt servicing costs, which may temper future growth.
Looking ahead, the State Bank of Pakistan may continue to monitor deposit trends closely as part of its broader monetary policy strategy. Stakeholders will watch for any shifts in foreign currency inflows that could influence the country’s exchange rate dynamics and overall economic outlook.
The modest rise may prompt banks to refine their foreign currency offerings, potentially expanding services that cater to both domestic investors and overseas Pakistanis. Such adjustments could help sustain the growth trajectory of foreign currency deposits and reinforce confidence in Pakistan’s banking system.
These developments are closely watched by policymakers and market participants alike.
