Import cover improves to 2.62 months

IMF inflows lift FX reserves to $21.09b; SBP injects Rs983b liquidity; gold extends gains

KARACHI:

Pakistan's total liquid foreign exchange reserves increased to $21.09 billion as of December 12, 2025, lifting the country's import cover to 2.62 months, supported primarily by fresh inflows from the International Monetary Fund (IMF).

According to data released by the State Bank of Pakistan (SBP), foreign currency reserves held by the central bank rose by $1.30 billion week-on-week to $15.89 billion, while net foreign reserves with commercial banks stood at $5.20 billion, taking total liquid reserves to $21.09 billion. The SBP said the weekly increase in its reserves was mainly due to the receipt of SDR 914 million, equivalent to about $1.2 billion, from the IMF under the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF).

The improvement in reserves has strengthened Pakistan's external buffer, with import cover rising from 2.41 months a week earlier to 2.62 months, based on average imports of the last three months, according to Arif Habib Ltd.

Furthermore, the SBP injected more than Rs983 billion into the banking system through a combination of conventional and Shariah-compliant open market operations (OMOs).

In the conventional segment, the central bank conducted an eight-day reverse repo purchase (injection), accepting bids worth Rs661 billion at a weighted average rate of 10.54% per annum. The realised value stood at Rs647.2 billion, where eight quotes were accepted within a range of 10.62% to 10.54%.

Separately, the SBP carried out a Shariah-compliant Mudarabah-based OMO injection for an eight-day tenor, accepting the full Rs322 billion offered at a return of 10.56% per annum. The realised value amounted to Rs320.6 billion, with two quotes accepted.

The Pakistani rupee posted a marginal Rs0.01 gain against the US dollar in the inter-bank market on Thursday, closing at 280.26 compared with 280.27 a day earlier, according to the SBP data. Meanwhile, gold prices in Pakistan rose, mirroring gains in the international market as investor sentiment remained supported by favourable US inflation data. In the local market, the price of gold per tola increased by Rs2,200 to Rs455,762, according to the All-Pakistan Gems and Jewellers Sarafa Association. The price of 10 grams of gold moved up by Rs1,800 to Rs390,742.

Internationally, gold gained $22 to trade at $4,334 per ounce. Silver prices followed a similar trend, rising by Rs78 to Rs6,900 per tola in the domestic market.

Adnan Agar, Director at Interactive Commodities, said gold initially rallied on supportive US inflation data but later eased amid pressure from other metals, particularly platinum. He noted that with the holiday season approaching, prices may consolidate in the near term, although the likelihood of new highs in the coming weeks remains strong.