Pakistan’s Foreign Exchange Reserves Cross $17 Billion as Rupee Weakens and Gold Prices Dip
Pakistan’s total liquid foreign exchange reserves have climbed to $17.1 billion as of June 13, 2025, marking a continued improvement in the country’s financial position, according to figures released by the State Bank of Pakistan (SBP) on Thursday.
Central bank-held reserves rose by $46 million during the week, reaching $11.7 billion. Meanwhile, net foreign reserves maintained by commercial banks stood at $5.3 billion.
Also Read:
The rise in reserves is attributed to consistent foreign inflows and SBP’s active dollar purchases from the local market. While these interventions help bolster reserves and cushion upcoming external payments, they also prevent the rupee from appreciating — a move seen as a balancing act to support export competitiveness but one that contributes to the weakening of local purchasing power.
In recent weeks, the Pakistani rupee has depreciated by three rupees against the US dollar, hitting an 18-month low. On Thursday alone, it dropped nine paisa in the inter-bank market, closing at 283.64 compared to 283.55 a day earlier. The decline has been driven by rising import payments and mounting debt obligations.
Data from the central bank shows that in February 2025 alone, the SBP conducted net foreign exchange purchases worth $223 million, pushing total net interventions to $5.3 billion for the first eight months of the ongoing fiscal year (July 2024–February 2025).
Simultaneously, domestic gold prices have softened following international trends. According to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of 24-karat gold fell by Rs460 per tola, settling at Rs358,595. The rate for 10 grams of gold dropped by Rs394 to Rs307,437.
Globally, gold remained relatively steady despite a hawkish outlook from the US Federal Reserve, with investors hedging against escalating geopolitical tensions in the Middle East. Spot gold was marginally down 0.1% at $3,365.79 per ounce, while US gold futures declined 0.7% to $3,382.80.
Adnan Agar, Director at Interactive Commodities, commented that the market is in a holding pattern pending developments in the Israel-Iran conflict. “Gold is on pause because the geopolitical situation, especially regarding Israel and Iran, remains unresolved,” he said. “By the weekend, we’ll know whether the US will intervene or not.”
Meanwhile, platinum prices also edged down slightly after recently reaching their highest levels since 2014. Agar noted that after years of lagging behind gold, both platinum and silver have attracted renewed investor interest, with both metals hitting multi-year highs earlier this month.
Read all the Breaking News Live on pakistantimes.com and Get Latest English News & Updates from Pakistan Times. Follow us on Whatsapp channel for more.
