Pakistan’s foreign exchange reserves have climbed to a record high of more than $26.8 billion, the State Bank of Pakistan (SBP) reported on Thursday, even as the war in the Gulf, which began on 28 February, has strained weaker economies and pushed oil prices higher.

Total liquid foreign reserves stood at $26,864.5 million as of 30 October, up $110 million on the previous week, according to the central bank’s weekly statement. Reserves held by the SBP rose by $39 million to $21,561.2 million, while commercial banks held $5,303.3 million. A week earlier, total reserves were $26,754.2 million, of which the SBP held $21,521.7 million.

The build-up has been rapid. The SBP’s own reserves stood at $16.568 billion in February and have risen by more than $5 billion since the Gulf war began, reaching $21.568 billion by 30 October. The central bank expects its reserves to rise to $23 billion by the end of December 2026 and $25 billion by June 2027. Import cover improved slightly to 3.93 months, according to Topline Securities.

The reserves picture remains the bright spot in an otherwise strained external account: the trade deficit for July-October of the current fiscal year reached $14.6 billion. The reserves milestone follows Wednesday’s confirmation that Saudi Arabia has rolled over its $3 billion financing facility, easing near-term repayment pressure.

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