SBP reserves rise $49m
The State Bank of Pakistan's (SBP) foreign exchange reserves increased $49 million to $11.15 billion during the week ended March 14, 2025.
With this, the country's total liquid foreign currency reserves reached $16.02 billion, of which $4.87 billion was held by commercial banks. In its statement released on Thursday, the central bank cited no reason for the increase in reserves.
Financial industry players hope that Pakistan's reserves will increase further following the potential release of a second loan tranche of over $1 billion by the International Monetary Fund (IMF). The approval of IMF's first review under the $7 billion Extended Fund Facility will also unlock additional external financing from other multilateral creditors.
Meanwhile, gold prices in Pakistan surged further, mirroring the upward trend in international markets. In the local market, the price of gold per tola rose Rs1,800, reaching a new high of Rs320,800.
Similarly, 10-gram gold was priced at Rs275,034, higher by Rs1,543, according to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA). Thursday's rise follows an increase of Rs1,650 to Rs319,000 per tola a day ago.
The international bullion rate also registered an uptick on Thursday, with prices climbing $12 to $3,050 per ounce (including a $20 premium), as reported by the APSGJA.
Globally, gold prices eased after hitting a record high earlier in the session, but it had a bullish outlook driven by potential rate cuts signalled by the US Federal Reserve and ongoing geopolitical and economic uncertainties. Spot gold was down 0.4% at $3,036.13 an ounce due to profit-taking, after hitting a record high of $3,057.21.
Trump, meanwhile, criticised the Fed's decision to hold rates, despite projections of two quarter-percentage-point cuts by year-end due to a weakening economic growth.
Moreover, the Pakistani rupee remained mostly stable against the US dollar, recording a slight depreciation of 0.01% in the inter-bank market. By the end of trading, the rupee stood at 280.23, down just two paisa compared to the previous day's close at 280.21. The SBP conducted an open market operation through a reverse repo (injection) on Thursday. A total of around Rs888 billion was offered, which was fully accepted at a rate of 12.06% per annum for an eight-day tenor.
The central bank received nine bids, all of which were accepted. This liquidity injection is aimed at stabilising market conditions and ensuring adequate cash flow within the financial system. Furthermore, the Central Directorate of National Savings (CDNS) revised upwards profit rates for various National Savings Schemes.
The Short-Term Saving Certificate saw a 15-basis-point (bps) hike, with the return reaching 10.96% from 10.81%. For the Defence Saving Certificate, a marginal 1bps increase was made as it offered a return of 12.15%, up from 12.14%.
Similarly, returns on the Pensioner Benefit Account, Behbood Savings Certificate and Shuhada Family Welfare Account were increased by 10 bps to 13.68% each.
The Sarwa Islamic Term Account and the Sarwa Islamic Saving Account saw a more significant rise of 70 bps, with returns climbing from 9.74% to 10.44%. However, the Saving Account rate was reduced by 100 bps, from 11.5% to 10.5%.