SBP's forex reserves rise $13m to $14.3b

Pakistan's foreign exchange reserves recorded a modest improvement during the week ended August 15, 2025, with the State Bank of Pakistan (SBP) holdings rising $13 million to $14.256 billion.

According to data released by the central bank, the country's total liquid foreign reserves stood at $19.571 billion. Of this, commercial banks held $5.315 billion in net reserves, while the SBP accounted for the bulk with $14.256 billion.

The total forex reserves stand at $19.6 billion with an import cover of 2.32 months, noted KTrade Securities. The SBP's reserves witnessed an increase of 0.09% week-on-week (WoW, $13 million) to $14.3 billion. Commercial bank reserves increased 1.16% WoW ($61 million) to $5.3 billion.

The Pakistani rupee extended its winning streak against the US dollar on Thursday, recording a slight appreciation of 0.01% in the inter-bank market. The local currency closed at 281.92, up three paisa from the previous day's rate of 281.95. This marked the rupee's 10th consecutive session of gains against the greenback.

At the end of the trading session, the rupee appreciated 0.01% day-on-day against the greenback to settle at 281.92, whereas it has depreciated 1.20% in calendar year to date and appreciated 0.65% in fiscal year to date, noted Ismail Iqbal Securities.

The recent upward momentum has been supported by improved market sentiment, driven by a sustained crackdown on illegal currency dealers and smuggling networks by law enforcement agencies.

In global markets, the US dollar edged lower on Thursday as investors grew cautious over the Federal Reserve's independence following fresh criticism from President Donald Trump. Markets are now awaiting Fed Chair Jerome Powell's upcoming remarks, which could provide clarity on the future direction of US interest rates.

Gold prices in Pakistan rose despite a steady trend in the international market, where investors remained cautious ahead of Federal Reserve Chair Jerome Powell's speech at the Jackson Hole symposium on Friday.

According to the All Pakistan Sarafa Gems and Jewellers Association, the price of gold per tola increased Rs2,000 to Rs357,200, while the 10-gram rate climbed Rs1,715 to Rs306,241. A day earlier, gold had closed at Rs355,200 per tola after shedding Rs1,400.

Commenting on international trends, Interactive Commodities Director Adnan Agar said the metal remained range bound, touching a high of $3,348 and low of $3,325 during the session. "The market is lacklustre, trading within a narrow $25-40 band, with no fresh developments on the geopolitical front, including the Russia-Ukraine situation," he noted.

Spot gold fell 0.1% to $3,342.25 per ounce as of 11:33 am ET (1533 GMT). US gold futures for December delivery were largely steady at $3,386.50. The US dollar index was up 0.4%, making the dollar-priced gold expensive for overseas buyers.