Pakistan, Jan. 1 -- Pakistan's total foreign exchange reserves crossed $21 billion by December 26, the State Bank of Pakistan (SBP) reported. Central bank reserves rose slightly despite a small drop in commercial banks' dollar holdings. The overall increase signals cautious improvement in the country's external liquidity.

The SBP data showed total reserves reached $21.122 billion, including both central bank holdings and commercial banks' deposits. Central bank dollar reserves increased by $13 million to $15.915 billion. This reflects ongoing efforts to maintain financial stability amid domestic and global pressures.

In contrast, commercial banks' dollar deposits fell by $23 million to $5.97 billion. Analysts attribute the drop to norma...