Pakistan’s forex reserves rise $16 million

Pakistan’s forex reserves rise $16 million

KARACHI: Pakistan’s foreign exchange reserves held by the State Bank of Pakistan (SBP) increased by $16 million during the week ended October 9, 2026, reaching approximately $21.47 billion, according to data released by the central bank on Thursday.

The SBP’s foreign exchange reserves stood at $21.469 billion, compared with $21.454 billion a week earlier, reflecting a modest improvement in the country’s external financial position. Meanwhile, Pakistan’s total liquid foreign currency reserves, including holdings maintained by commercial banks, reached $26.863 billion during the reporting week.

Commercial banks held net foreign exchange reserves of $5.394 billion as of October 9, contributing to the country’s overall reserve position. The latest figures indicate a slight increase in the central bank’s holdings, although sustained growth in reserves remains important for meeting external payment obligations, supporting imports and maintaining confidence in the economy.

Meanwhile, the Pakistani rupee continued to post marginal gains against the US dollar in the interbank market on Thursday. The local currency appreciated by 0.01%, closing at Rs276.92 against the dollar, compared with Wednesday’s closing rate of Rs276.95. The rupee gained three paisas during the session, extending its recent modest improvement.

Currency movements and reserve levels remain closely watched by investors and businesses because they influence import costs, external debt servicing and broader market sentiment.

In the domestic bullion market, gold prices remained unchanged despite a significant recovery in international prices. According to rates issued by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), gold traded at Rs437,836 per tola, while the price of 10 grams remained steady at Rs375,373.

The local market held its position after gold prices settled at Rs437,836 per tola on Wednesday, following an intraday decline of Rs3,000. The unchanged rates indicated that domestic bullion prices had yet to reflect the latest upward movement in the international market.

Internationally, gold prices recovered as a weaker US dollar and declining US Treasury yields supported demand for the precious metal. Spot gold rose 1.1% to $4,149 per ounce by 12:36 am EDT (1636 GMT), according to Reuters, recovering after falling to a one-week low during the previous session.

US gold futures for December delivery also gained 1.5%, reaching $4,170.10 per ounce. The recovery reflected renewed buying interest as movements in the dollar and bond yields influenced investor demand for gold.

Gold typically benefits when the US dollar weakens because the metal becomes less expensive for holders of other currencies. Lower Treasury yields can also make non-interest-bearing assets such as gold more attractive to investors.

Market participants will continue to monitor movements in Pakistan’s foreign exchange reserves, the rupee-dollar exchange rate and international bullion prices for indications of changing economic and investment trends.