The State Bank of Pakistan (SBP) transferred a record Rs2.7 trillion to the federal government as a dividend payout for fiscal year 2024-25 (FY25), despite recording a 27% decline in its own annual profit.
According to an analysis of central bank data, the SBP's profit for FY25 stood at Rs2.5 trillion. This decrease is primarily attributed to a recent decline in the benchmark interest rate, which has compressed the bank's earnings from its monetary operations.
The dividend payout to the federal coffers surged dramatically. The transfer of Rs2.7 trillion marks a massive increase of 2.8 times, or 180%, compared to the previous fiscal year.
Moreover, the SBP's foreign exchange reserves recorded a slight increase of $18 million during the week ended August 22, 2025, pushing the bank's reserves to $14.274 billion. According to the data released by the SBP, the country's total liquid foreign reserves stood at $19.618 billion. Of these, the reserves held by commercial banks amounted to $5.343 billion. "Import cover is estimated to be at 2.7 months after the aforementioned change," noted AKD Securities.
Earlier, the SBP carried out net foreign exchange interventions amounting to $7.8 billion between June 2024 and May 2025.
Moreover, the Pakistani rupee inched up slightly on Thursday, appreciating by 0.01% against the US dollar in the inter-bank market. By the day's close, the rupee stood at 281.80, marking an improvement of three paisa compared to the previous session. This also extended the local currency's winning streak to 15 consecutive sessions. On Wednesday, the rupee had closed at 281.83 against the greenback.
Furthermore, the SBP-held gold reserves surged to $6.8 billion in FY25, reflecting a robust 41% year-on-year (YoY) spike, according to the SBP and AKD Research data.
The significant rise was mainly attributed to a sharp rally in global gold prices, while the central bank also added 1,925 ounces to its holdings during the year.
Over the last five years, the SBP's gold reserves have shown consistent growth, rising from $3.67 billion in FY20 to $6.84 billion in FY25, more than doubling in value. The trend highlights Pakistan's increasing reliance on gold as a safe-haven asset to strengthen its overall reserves position. Meanwhile, gold prices in Pakistan continued their upward trend on Thursday, tracking international gains, as the global bullion market hit a five-week high. The rise was fueled by a softer US dollar and safe-haven demand amid concerns over the Federal Reserve's independence.
According to the All Pakistan Sarafa Gems and Jewellers Association, the price of gold per tola increased by Rs900, reaching Rs362,600, while 10-gram gold was sold for Rs310,871 after rising Rs772.
In the international market, gold traded between $3,384 and $3,413 an ounce, with prices later hovering around $3,406. Interactive Commodities Director Adnan Agar noted that gold has gradually risen by around $100 in the past 10 days, climbing from the $3,300 level. "Gold has been moving in one direction for about three months within a $100-150 range," Agar said. "Sustainability of this rise depends on future developments. If US interest rates are lowered, it will be favourable for gold. For now, the market is awaiting clear signals."
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