Overview
- Pakistan’s total liquid foreign exchange reserves rose to $26.8645 billion in the week ended October 30, 2026, with State Bank of Pakistan holdings up $39 million to $21.56 billion and commercial banks holding $5.3033 billion.
- India’s foreign exchange reserves dropped by $2.691 billion to $717.056 billion in the same reporting week, driven by falls in foreign currency assets, gold holdings and special drawing rights.
- Pakistan’s small reserve gain was supported by a mix of external financing including IMF EFF/RSF disbursements, multilateral and commercial borrowing and proceeds from a Panda bond issuance.
- Sources say India’s decline reflects the Reserve Bank of India’s use of FCNR(B) resources and dollar sales to defend the rupee, while in Pakistan the rupee nudged firmer to 276.67 and domestic gold prices surged on stronger international bullion and lower US yields.
- The contrasting moves matter because reserve levels determine a central bank’s capacity to meet external payments and support the currency, so policymakers may continue to use swaps, bond deals and market intervention to manage liquidity and investor confidence.