Reserves rise modestly by $22m

Pakistan's liquid foreign exchange reserves saw a modest rise during the week ended September 19, 2025, as the State Bank of Pakistan (SBP) reported an increase of $22 million.

According to the central bank, its reserves climbed to $14,379.5 million, up from $14,357.5 million a week earlier. This brought the country's total liquid foreign reserves to $19,793.3 million.

The breakdown showed that the net foreign reserves held by commercial banks stood at $5,413.8 million, while the bulk remained with the SBP.

Meanwhile, the Pakistani Rupee (PKR) posted a slight appreciation of 0.01% against the US dollar in the inter-bank market on Thursday, closing at 281.41, according to data from the SBP. This marked a minor rebound of two paisa from Wednesday's close at 281.43, reflecting continued stability amid global currency fluctuations.

Ismail Iqbal Securities noted that the PKR's daily uptick comes despite a calendar year-to-date depreciation of 1.01%, while it has strengthened 0.84% since the fiscal year began in July.

"At the end of the trading session, the PKR appreciated by 0.01% day-on-day against the greenback to settle at 281.41," the brokerage house stated in its market update on X.

Moreover, gold prices in Pakistan fell on Thursday, mirroring a downturn in the international market where the precious metal trimmed earlier gains after a surprise drop in weekly US jobless claims. Investors are now focused on the upcoming US inflation data that could influence the Federal Reserve's rate decisions.

Locally, the price of gold per tola dropped by Rs2,000 to settle at Rs396,800, according to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA). The 10-gram gold rate declined by Rs1,714 to Rs340,192. This follows an unchanged rate of Rs398,800 per tola on Wednesday.

Spot gold was steady at $3,735.09 per ounce as of 11:58 am EDT (1558 GMT) after rising as much as 0.6% earlier in the session, according to Reuters. Prices hit a record high of $3,790.82 on Tuesday. US gold futures for December delivery fell 0.1% to $3,766.

"Jobless claims came in at 218,000 versus expectations of 235,000, a slightly hawkish print that may temper some (rate) easing expectations, but it's not enough to alter the overall trend," said Peter Grant, Vice President and Senior Metals Strategist at Zaner Metals.

Interactive Commodities Director Adnan Agar noted that the decline in the local market aligns with global trends, with gold prices peaking at $3,761 before easing. "The market hit a low of $3,717 yesterday (Wednesday) and is coming down a bit today (Thursday)," he said.

Meanwhile, silver surged to a record high of around $45 and Rs4,663 locally, contrasting with gold's slight retreat.