# Pakistan's Reserves Rise But Risks Linger

> Pakistan's foreign reserves hit $21.5bn but rate hikes signal economic fragility.
- Title: Pakistan's Reserves Rise But Risks Linger · Daily Times
- Summary: Pakistan's foreign reserves hit $21.5bn but rate hikes signal economic fragility.
- Keywords: pakistan, foreign reserves, state bank, imf programme, inflation, policy rate, g-24 chairmanship, remittances, exports, Daily Times
- Source: Daily Times — https://dailytimes.com.pk/1580653/record-reserves-borrowed-confidence
- Author: Sajid Salamat
- Published: 2026-11-13T04:57:51+00:00
- Read time: 1 min
- Topics: pakistan, foreign reserves, state bank, imf programme, inflation, policy rate, g-24 chairmanship, remittances, exports, news
## Economic Scoreboard Improves
Pakistan's foreign exchange reserves crossed $21.5 billion, a substantial recovery from recent external financing crisis.
## Credit Ratings Improve
S&P upgraded Pakistan to B with stable outlook, Moody's to B3 with stable outlook.
## Exports and Remittances Rise
Goods and services exports reached $11.2 billion, workers' remittances $10.9 billion.
## G-24 Chairmanship
Pakistan assumed chairmanship of the G-24, developing world's monetary affairs caucus.
## Policy Rate Hike
State Bank raised policy rate by 50 basis points to 12 per cent on October 26.
## Inflation Accelerates
Inflation rose under pressure from energy prices, food supplies and Middle East conflict.
## IMF Programme Ends in 2027
Current IMF programme scheduled to conclude in 2.
## Reserves Don't Equal Solvency
Gross reserves measure immediate liquidity but not long-term external solvency.
## Economic Earnings Depend on Remittances
Pakistan depends almost as heavily on citizens' remittances as on domestic exports.
## Foreign Direct Investment Remains Low
Foreign direct investment at $720 million for the quarter remains modest relative to $400 billion economy.
## Rate Hike Shows Narrow Corridor
Rate hikes indicate narrow corridor between inflation and sustainable growth.
## Key takeaway

Pakistan's foreign reserves reached $21.5 billion while inflation rose, requiring careful fiscal management to avoid external debt crises.