Forex reserves continue uptrend, hit $15.61b

Pakistan's total liquid foreign currency reserves stood at $15.61 billion as of May 9, 2025, according to the latest data released by the State Bank of Pakistan (SBP).

The foreign exchange reserves held by the State Bank were $10.40 billion while commercial banks had $5.21 billion. During the week ended May 9, the SBP's reserves increased by $71 million, reflecting positive inflows and strengthening confidence in the external account. On May 13, 2025, the SBP received the second tranche of SDR 760 million (approximately $1.023 billion) from the International Monetary Fund (IMF) under the ongoing Extended Fund Facility (EFF). This amount will be recorded in the foreign exchange reserves for the week ending May 16, providing a further boost to the country's external buffers.

Pakistan's foreign reserves position has gradually improved over recent months, largely driven by disbursements under the IMF's EFF and newly approved Resilience and Sustainability Facility (RSF) as well as stronger remittance inflows and improved trade management.

In July 2023, the reserves had dipped to critically low levels of around $3 billion with import cover of less than one month. Since then, Pakistan has made consistent efforts to rebuild reserves through multilateral support and fiscal adjustments.

The current reserves level now offers over two months of import cover, helping stabilise the rupee and improve market sentiment.

Economists anticipate further stability in the foreign exchange market in the coming weeks, especially as the IMF inflows are reflected in the central bank's next weekly report.

Moreover, the inflow of remittances under the Roshan Digital Account (RDA) rose to $10.180 billion by the end of April 2025 as compared to $10.003 billion by March 2025, according to APP. Data showed that the inflow of remittances during April was recorded at $177 million as compared to $235 million in March and $204 million in February, according to the latest data released by the State Bank.

These accounts provide innovative banking solutions to millions of non-resident Pakistanis (NRPs), including the non-resident Pakistan-origin Card (POC) holders, seeking to undertake banking, payment and investment activities in Pakistan. The number of accounts registered under the programme rose by 8,802 to 814,244 in April 2025 from 805,442 accounts in March.

By the end of April, overseas Pakistanis had invested $456 million in the Naya Pakistan Certificates, $900 million in the Naya Pakistan Islamic Certificates and $58 million in the Roshan Equity Investment.

Meanwhile, gold prices in Pakistan extended their downward trend on Thursday. The price of gold per tola dropped by Rs6,700, settling at Rs335,200.

According to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of 10 grams of gold fell by Rs5,745, bringing it down to Rs287,379.

This follows a decrease on Wednesday, when the per-tola gold price slipped by Rs2,300 and closed at Rs341,900.

Adnan Agar, Director at Interactive Commodities, noted that gold had fallen to the low of $3,120 in early trading, but has since recovered by nearly $100, with the market now fluctuating between $3,210 and $3,215.

Moreover, the rupee posted a modest gain against the US dollar on Thursday, appreciating by 0.04% in the inter-bank market. By the close of trading, the rupee was valued at 281.61, marking an improvement of 11 paisa from the previous day's close of 281.72.