Forex reserves close FY25 at $14.51b

Pakistan's foreign exchange reserves held by the State Bank of Pakistan (SBP) stood at $14.51 billion by the end of FY25, marking an increase of $5.12 billion from $9.39 billion a year earlier, according to provisional data released by the central bank on Wednesday.

The reserves amounted to $9.39 billion on June 30, 2024, indicating a year-on-year rise of 54.5%.

"This reflects a noticeable improvement in the country's current account balance and realisation of planned inflows during the year," the SBP noted.

In a volatile fiscal year, the central bank reserves had fluctuated sharply due to debt repayments and scheduled inflows. For instance, by April 25, 2025, the SBP's reserves had inched up $9 million week-on-week to $10.21 billion.

As of June 20, 2025, the total liquid foreign reserves of the country were reported at $14.40 billion. Of this, the SBP held $9.06 billion while net reserves of commercial banks stood at $5.33 billion.

The sharp fall in SBP's reserves during the week ended June 20 – a decline of $2.66 billion – was attributed to external debt repayments, particularly commercial borrowings by the government. However, these outflows were offset in the following week by substantial inflows. According to the SBP, the central bank received $3.1 billion in government commercial loans and over $500 million from multilateral institutions during the last week of June.

Meanwhile, gold prices in Pakistan edged lower on Wednesday, despite international bullion rates holding steady as investors awaited crucial US economic data. According to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of 24-karat gold per tola fell Rs600, settling at Rs356,200. Similarly, the price of 10-gram gold dropped Rs514 to Rs305,384.

This comes a day after gold prices surged Rs6,600 per tola on Tuesday, driven by bullish momentum in global markets.

Interactive Commodities Director Adnan Agar noted that gold was trading within a tight band on Wednesday. "Gold is range bound between $3,351 and $3,327, currently at $3,340. The upcoming US employment data is critical – if it supports gold, prices may move towards $3,400; if not, we could see a dip to $3,300, possibly even lower," he said.

Agar added that trading volumes may also be influenced by upcoming US bank holidays on Thursday and Friday, which would lead to early market closures and potentially limited liquidity. In the inter-bank currency market, the Pakistani rupee depreciated 19 paisa against the US dollar, closing at 283.95, compared to 283.76 on June 30, 2025. This marks a 0.07% weakening of the local currency, according to data released by the State Bank of Pakistan (SBP). The SBP on Wednesday injected Rs1.163 trillion through Open Market Operations (OMOs), including both conventional and Shariah-compliant instruments, to support short-term market liquidity.

Under the conventional OMO, the SBP injected Rs805.15 billion and through Shariah-compliant Mudarabah-based OMO, it poured Rs358 billion.