Pakistan’s forex reserves jump to $20.3 billion, highest in 39 months 

KARACHI: Pakistan’s foreign exchange reserves climbed to a 39-month high of $20.03 billion in the week ended July 4, the State Bank of Pakistan (SBP) said on Thursday, marking a notable recovery from crisis-era lows seen in early 2023. 

The increase was led by a sharp $1.77 billion rise in the SBP’s reserves, which reached $14.5 billion, largely due to official inflows. Reserves held by commercial banks were unchanged at $5.53 billion. 

According to brokerage Arif Habib Limited, SBP reserves last stood above these levels in March 2022 when they touched $15 billion, before plunging to a low of $2.9 billion in January 2023 amid a worsening balance of payments crisis. A recovery began mid-2023, with reserves reaching $8.7 billion in July last year and climbing steadily since. The current level reflects growing external support and improved inflows. 

AKD Securities estimates the country’s import cover now stands at 2.71 months. 

Despite the improved reserve position, the rupee weakened slightly in Thursday’s interbank session, shedding nine paisa to close at 284.56 against the US dollar. 

Globally, the dollar eased from a two-week high after US President Donald Trump’s announcement of new tariffs drew muted market reaction.  

The Brazilian real, however, tumbled 2.8% after the US threatened a 50 per cent levy on imports. The dollar’s gains were also tempered by a fall in US Treasury yields following a strong 10-year bond auction, easing fears of a broad “Sell America” trend. 

Gold prices in Pakistan rebounded, tracking international markets. The price of 24-karat gold rose Rs3,200 to Rs354,700 per tola, recovering from a Rs3,000 drop a day earlier. The 10-gram price climbed Rs2,744 to Rs304,098, according to the All Pakistan Sarafa Gems and Jewellers Association. 

On global markets, spot gold edged up 0.2 per cent to $3,318.56 per ounce, supported by geopolitical concerns. US gold futures also rose 0.2 per cent to $3,328.30, though gains were limited by a firmer dollar. 

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