KARACHI, August 16, 2025 – Pakistan’s foreign exchange reserves posted a marginal increase last week, while the rupee strengthened for the fourth week in a row against the US dollar, providing some relief to financial markets amid persistent economic challenges.
Fresh data released by the State Bank of Pakistan (SBP) shows that the central bank’s reserves inched up by $11 million, reaching $14.243 billion during the week ending August 8. The country’s overall liquid reserves now stand at $19.497 billion, with commercial banks holding $5.254 billion and the remainder parked with the SBP.
In a significant move to ease liquidity pressures, the SBP also injected a staggering Rs12 trillion into the banking system through a reverse repo auction on Friday. The operation included Rs191 billion in seven-day contracts at 11.04% and Rs11.812 trillion in 14-day contracts at 11.01%.
The local currency maintained its upward momentum, closing at 282.06 against the greenback after gaining 0.06% on a day-to-day basis. This marked the rupee’s fourth consecutive weekly advance, although analysts pointed out that the bigger picture remains mixed. Year-to-date, the rupee has depreciated by 1.25%, while on a fiscal-year basis it has managed to claw back a modest 0.60%.
Brokerage houses attributed the steady gains to improved sentiment in the currency market. “The rupee has now strengthened for four straight weeks against the dollar, reflecting both stable inflows and better liquidity management by the central bank,” said a note from AKD Securities.
Meanwhile, the gold market in Pakistan tracked global volatility, with prices slipping despite a brief recovery in international trade. The All Pakistan Sarafa Gems and Jewellers Association reported that gold prices fell by Rs1,000 per tola, settling at Rs357,100, while the price of 10 grams dipped by Rs858 to Rs306,155. Earlier in the week, gold had already shed Rs200 per tola.
Internationally, spot gold was trading at $3,342.62 per ounce, up 0.2% in intraday trade but still on course for a 1.7% weekly decline. Traders said hotter-than-expected US inflation data had dampened hopes of near-term rate cuts, leaving the market cautious ahead of a high-profile meeting between US President Donald Trump and Russian President Vladimir Putin.
Commodity expert Adnan Agar noted that gold is currently moving within a narrow band of $10 to $15, with investors awaiting clarity from the upcoming Russia-US summit. “The real direction will emerge after Monday when the outcome of the talks is known,” he explained.
