Forex reserves tick up by $31m
Pakistan's total liquid foreign exchange reserves increased $31 million, standing at $19.66 billion as of October 31, 2025, according to data released by the State Bank of Pakistan (SBP) on Thursday.
The central bank's own reserves rose $31 million during the week, reaching $14.50 billion, while commercial banks held $5.16 billion in net reserves. Furthermore, the SBP conducted an open market operation (OMO) in the form of a reverse repo (injection) on Thursday, injecting Rs774 billion into the banking system to ease short-term liquidity pressures. According to the central bank's Domestic Markets and Monetary Management Department, the one-day OMO attracted total bids worth Rs774 billion, all of which were accepted at a return of 11.10% per annum.
Moreover, the Pakistani rupee recorded a marginal gain against the US dollar in the inter-bank market. By the end of the trading session, the local currency closed at Rs280.85 per dollar, appreciating by one paisa from the previous day's close at Rs280.86.
Meanwhile, gold prices in Pakistan climbed, mirroring gains in the international market, where bullion edged higher amid a weaker US dollar and renewed safe-haven demand driven by uncertainty over a prolonged US government shutdown and legal disputes surrounding tariffs. According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold rose by Rs3,700 per tola to settle at Rs423,062, while the price for 10 grams increased by Rs3,122 to Rs362,707.
The uptick follows a decline on Wednesday, when gold lost Rs1,000 per tola to close at Rs419,362. Traders said the rebound reflects global market sentiment as investors shift towards safe-haven assets amid economic and policy uncertainty in the United States.
Spot gold was up 0.1% at $3,984.48 per ounce by 11:07 am ET (1607 GMT), according to Reuters. US gold futures for December delivery were steady at $3,992.10 per ounce. The dollar fell 0.4% after hitting a four-month high in the previous session, making gold cheaper for holders of other currencies. The benchmark 10-year US Treasury yields were down 1.6%.
With the US government shutdown and scepticism from US Supreme Court judges about the legality of President Donald Trump's sweeping tariffs, "we're seeing a revival of the haven bid," said Peter Grant, Vice President and Senior Metals Strategist at Zaner Metals. "(Gold) is on track for a fairly decent close to the year ... I'd say a year-end target in the $4,300 to $4,400 range seems reasonable."