The State Bank of Pakistan (SBP) purchased $7.2 billion from the inter-bank market between June 2024 and April 2025, according to data compiled by Taurus Securities Limited. This substantial intervention reflects the central bank's strategy to rebuild foreign exchange reserves and ensure macroeconomic stability amid an International Monetary Fund (IMF)-supported economic reform programme.
The monthly data shows strong buying in late 2024, peaking in November with $1.15 billion, followed by $1.02 billion in October and $946 million in September. Activity eased in early 2025, with only $154 million in January, $223 million in February, a rebound to $860 million in March, and a drop to $473 million in April.
This accumulation of dollars helped SBP reserves rise from $13.5 billion in June 2024 to nearly $16.5 billion in November 2024. However, reserves started falling from December and settled at around $14.5 billion by April 2025, likely due to debt repayments or weaker net financial inflows.
The business community has raised serious concerns over the exchange rate, alleging that the rupee is being held at an artificially strong level. SBP remains the largest dollar buyer, keeping demand high and the rupee undervalued. Rising imports and declining exports have worsened the imbalance.
The Pakistan Business Forum (PBF) claimed that the dollar's actual market value should be closer to Rs260, while it is currently around Rs283. "The dollar is being controlled through artificial means. The prime minister must take immediate notice," the Forum said in a statement.
PBF Chief Organiser Ahmad Jawad said Pakistan's policies have historically failed to restore the rupee after depreciation. "Unfortunately, whenever the rupee has fallen, it has never been brought back to its previous strength," he noted. He warned the economy cannot operate sustainably at Rs283 per dollar, warning that meaningful relief will only be possible through a stronger rupee.
Meanwhile, the rupee appreciated by Rs1.92 against the US dollar over the last five trading sessions. It closed at Rs283.05 on July 29, compared t to 283.21 on July 28, a 0.06% gain, according to SBP data compiled by AKD Research.
Gold prices in Pakistan also declined on Tuesday, tracking a cautious tone in the international market as investors awaited key developments, including US-China trade talks and the upcoming US Federal Reserve policy decision. According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), per tola gold fell by Rs1,600 to Rs354,700, while 10-gram gold dropped by Rs1,372 to Rs304,098.
The decline followed a Rs100 fall on Monday. Global prices remained steady with traders adopting a wait-and-see approach ahead of major economic signals that could influence monetary policy and global risk sentiment.
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