Pakistan's total liquid foreign exchange reserves stood at $19.61 billion after a decline of $153 million for the week ended July 25, 2025 owing to debt payments, according to figures released by the State Bank of Pakistan (SBP) on Thursday.
The SBP reported a decrease of $153 million in its reserves, which fell to $14.30 billion, mainly due to external debt repayments. Meanwhile, net foreign exchange reserves held by commercial banks remained stable at $5.30 billion.
The combined position of the country's foreign exchange reserves stood at $19.61 billion, reflecting the continued impact of external financial obligations on the central bank's holdings. Furthermore, the Pakistani rupee continued its positive momentum against the US dollar on Thursday, with a slight appreciation of 0.03% in the inter-bank market. By the end of trading, the rupee reached 282.87, marking an increase of 8 paisa from the previous day's close at 282.95.
Though the rupee appreciated by 0.03% day-on-day against the greenback, it has depreciated by 1.53% in the calendar year to date (CYTD) and appreciated by 0.32% in the fiscal year to date (FYTD), according to Ismail Iqbal Securities.
The local currency has benefited from a government crackdown on illegal dollar trading, which has bolstered its value. However, traders report that black market activity has quickly adapted, shifting to digital platforms and discreet home delivery services.
Since July 22, numerous unauthorised exchange outlets have been closed after the military intelligence agency summoned currency dealers to address the rising dollar rate in the open market. The move was followed by enforcement actions led by the Federal Investigation Agency (FIA), tasked with combating financial crimes and smuggling. The rupee showed notable strength against the US dollar in recent trading sessions, gaining Rs2.10 over the past seven days, according to data from the State Bank and AKD Research.
Gold dips Rs2,000
Gold prices in Pakistan declined, bucking the international trend, where the yellow metal saw a 1% rise as investors sought safe-haven assets amid growing tariff uncertainty ahead of US President Donald Trump's August 1 deadline to conclude trade negotiations.
In the local market, the price of gold per tola dropped by Rs2,000 to settle at Rs353,000, according to the All Pakistan Sarafa Gems and Jewellers Association. Similarly, the rate of 10-gram gold fell by Rs1,714, closing at Rs302,641.
This came after a marginal increase on Wednesday, when gold rose by Rs300 per tola to reach Rs355,000. Commenting on market movement, Interactive Commodities Director Adnan Agar noted that international gold prices on Thursday reached a high of $3,314 and low of $3,282, with the market later hovering around $3,294.
"Despite recent gains supported by favourable US economic data, gold remains on the lower side," Agar said. "If the upcoming US employment data fails to support gold, we could see a dip towards $3,250 to $3,270. However, a rebound from that range could define the next trend." Analysts suggest that geopolitical and economic uncertainty continues to fuel volatility in global bullion markets, with local pricing reflecting a mix of international trends and rupee-dollar parity.
Spot gold, internationally, was up 1% at $3,308.07 per ounce as of 1255 GMT, according to Reuters. US gold futures gained 0.3% to $3,306.10. "We've seen an uptick in trade uncertainty as we approach this August 1st deadline for tariffs... just a little bit of revival of the safe-haven bid," said Peter Grant, Vice President and Senior Metals Strategist at Zaner Metals.
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