The State Bank of Pakistan (SBP) purchased $5.807 billion from the interbank market during the first eight months of FY26, highlighting the central bank’s aggressive push to strengthen foreign exchange reserves amid improving external sector stability.
According to the central bank’s latest data, the SBP’s net dollar buying in July-February FY26 was higher than the $5.327 billion purchased in the same period of the previous fiscal year. The figures also revealed that cumulative dollar purchases by the SBP have reached around $14.064 billion since the central bank started disclosing intervention data in June 2024.
During FY25, the SBP said, it had bought a net $7.684 billion from the currency market.
Analysts said the central bank has taken advantage of improved dollar inflows, rising remittances and relative stability in the rupee to rebuild foreign exchange reserves and strengthen Pakistan’s external account position. “The SBP is utilizing the current calm in the currency market to steadily accumulate reserves,” a currency market analyst said. “The continued buying reflects confidence that inflows are sufficient to support reserve growth without creating immediate pressure on the rupee.”
Market experts said the reserve accumulation strategy is also linked to commitments under Pakistan’s IMF program, which requires strengthening of external buffers and maintaining exchange rate stability.
Pakistan’s external account has remained relatively stable in recent months due to controlled import demand, improving exports and higher workers’ remittances, allowing the central bank room to absorb excess dollar liquidity from the market. Analysts expect the SBP to continue purchasing dollars in the coming months if current account trends remain favorable and inflows continue at the present pace.
However, economists warned that any sharp rise in global oil prices, weaker inflows or increased import demand could reduce the central bank’s ability to maintain large-scale dollar purchases later in the fiscal year.