Just two years ago, Pakistan struggled to cover even a few weeks of import and export payments. Now, the country's external position has shown a significant turnaround, with total liquid foreign exchange reserves reaching $19.87 billion amid improved inflows and growing political stability.
According to the State Bank of Pakistan (SBP), foreign exchange reserves held by the central bank surged to $14.51 billion, marking a sharp year-on-year increase of $5.12 billion, or 54.5%, from $9.39 billion a year earlier.
The SBP attributed the rise in reserves to the realisation of inflows including $3.1 billion in commercial loans and over $500 million from multilateral institutions during the final week of June. "This reflects a noticeable improvement in the country's current account balance and realisation of planned inflows during the year," the SBP stated.
During the week ending June 27, 2025, SBP's reserves rose by $3.66 billion, climbing to $12.73 billion from $9.06 billion reported the previous week. Total liquid reserves now stand at $19.87 billion, with commercial banks holding $5.36 billion.
The dramatic recovery in the last week of FY25 followed a $2.66 billion drop the week before, driven by external debt repayments. The rebound is seen as a result of stabilisation efforts and fiscal reforms aimed at supporting the external account.
This rise in reserves is expected to support the rupee, improve import cover, and strengthen Pakistan's position in future talks with international lenders.
The Pakistani rupee showed a slight gain against the US dollar in the interbank market on Thursday, appreciating by 0.03% to close at 283.86, up 9 paisas from the previous day's closing rate of 283.95.
Meanwhile, domestic gold prices rose on Thursday despite a 1% decline in the international bullion market following stronger-than-expected US payroll data, which dampened expectations of an early rate cut by the US Federal Reserve.
According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of 24-karat gold per tola increased by Rs800 to Rs357,000. The 10-gram gold price also rose by Rs685 to settle at Rs306,069.
This followed a dip in prices a day earlier, when the per tola rate dropped by Rs600 to Rs356,200. Despite local gains, international sentiment remained bearish.
Adnan Agar, Director at Interactive Commodities, said gold traded between $3,311 and $3,363 globally, with prices hovering around $3,325. He noted a key support level between $3,310 and $3,300, warning that a break below this range could push prices down to $3,250.
He added that due to the US bank holiday on Friday, trading volumes were expected to remain low, with significant activity likely to resume on Monday.
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