The central bank's foreign currency reserves rose $21 million to $14.357 billion in the week ended September 12, 2025, according to data released by the State Bank of Pakistan (SBP) on Thursday.
With this uptick, the country's total liquid foreign reserves stood at $19.736 billion. Out of this, commercial banks held $5.378 billion in net reserves.
Although the SBP's reserves are significantly higher than last year's $9.56 billion by this time, much of this build-up reflects IMF inflows and bilateral rollovers rather than self-sustained improvements through exports or investment. The reserve numbers look better, but the underlying flows show continuing fragility. Any delay in IMF reviews or bilateral support could quickly unravel stability.
The Real Effective Exchange Rate (REER) stood at 100.1 in August 2025, compared to 100.01 in July 2025, reflecting a marginal month-on-month increase of 0.09%. On a fiscal year-to-date basis (FYTD), the REER has appreciated by 2.11%, while on a calendar year-to-date basis (CYTD), it remains down by 3.44%, according to Arif Habib Limited.
The Pakistani rupee extended its upward streak against the US dollar on Thursday, appreciating 0.01% in the inter-bank market. By the day's close, the local currency settled at 281.47, up three paisa from Wednesday's close at 281.50. This marked the rupee's 30th consecutive session of gains against the greenback.
"The rupee has depreciated 1.04% CYTD and appreciated 0.82% FYTD," said Ismail Iqbal Securities.
In global trade, the US dollar held steady in early Thursday dealings after a plunge to three and a half year low, followed by a strong rebound, as markets digested the Federal Reserve's cautious signals on future rate cuts.
Gold prices in Pakistan remained unchanged, even as international rates slipped on profit-taking after hitting a record high in the previous session. Investors globally pared gains while awaiting clearer signals on the US Fed's stance regarding further rate cuts.
According to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold per tola held firm at Rs388,600, while the rate for 10 grams stayed unchanged at Rs333,161. A day earlier, the per-tola gold prices had declined Rs2,400.
In the international market, spot gold slipped 0.6% to $3,639.05 per ounce as of 11:15 am EDT (1515 GMT). US gold futures for December delivery fell 1.2% to $3,672.20.
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