KARACHI:
Pakistan’s foreign exchange reserves recorded a weekly fall, while gold reached record-breaking highs and the rupee lost some ground against the US dollar amid fluctuating global economic cues.
As per the latest figures released by the State Bank of Pakistan (SBP), the country’s foreign exchange reserves dropped by $127 million, bringing the central bank’s total to $10.6 billion as of April 11, 2025. The decline is primarily attributed to external debt repayments.
Combining the holdings of both the SBP and commercial banks, the total national reserves stood at $15.6 billion, with $5.1 billion parked in commercial banks.
📊 REER Improves, But Export Woes Remain
Meanwhile, the Real Effective Exchange Rate (REER) — which assesses the value of the Pakistani rupee about a basket of foreign currencies, adjusted for inflation — showed a modest improvement in March 2025.
According to SBP, REER eased to 101.62, down from 102.25 in February. While a number above 100 suggests imports become more affordable and exports lose competitiveness, a lower figure hints at improved export potential. Compared to March 2024, this indicates a year-on-year dip of 2.38%, as last year’s REER was 104.1.
💱 Rupee Faces Mild Pressure Amid Global Dollar Volatility
On the currency front, the Pakistani rupee weakened slightly against the US dollar on Thursday. The local unit closed at Rs280.62, down by 16 paisas from the previous day’s value of Rs280.46.
This minor slide came despite the US dollar weakening globally, as ongoing trade-related concerns nudged investors away from American assets. However, the greenback managed a mild recovery against the Japanese yen, supported by stable tones from the US-Japan trade talks, which avoided any focus on exchange rate manipulation.
🪙 Gold Smashes Records in Domestic Market
While the rupee lost some value, gold prices skyrocketed to uncharted territory in Pakistan, following the global uptrend in precious metals.
According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), gold rates climbed by Rs2,000 per tola on Thursday, reaching a historic Rs350,000 per tola for the first time.
This new high follows Wednesday’s sharp Rs8,600 surge when gold prices touched Rs348,000 per tola. Globally, gold also maintained bullish momentum, with APGJSA citing the international price at $3,329 per ounce, a $19 daily increase.
📈 Global Gold Sees Temporary Pullback Amid Profit-Taking
Adnan Agar, Director at Interactive Commodities, reported that gold surged to nearly $3,350 per ounce earlier in the day, but corrected slightly due to profit-booking.
Prices briefly dipped to around $3,285, before stabilizing near the $3,305–$3,310 range by day’s end.
Analysts believe if selling pressure persists, gold might slip to $3,250 or even $3,230, though current market sentiment remains cautiously optimistic.
With international markets closed on Friday for Good Friday, trading volumes are expected to drop, with the futures market reopening on Monday for renewed action.
❓FAQs – For Pakistani Readers
1. Why did Pakistan’s foreign reserves fall this week?
The primary reason was the repayment of external debts by the State Bank of Pakistan, leading to a $127 million drop.
2. What does the REER figure indicate about Pakistan’s economy?
A REER value above 100 suggests the rupee is stronger than its trade-weighted average, potentially hurting exports. The drop to 101.62 may aid competitiveness.
3. Why is gold becoming more expensive in Pakistan?
Global gold prices have surged due to safe-haven demand amid economic uncertainty, and the weakening rupee adds further cost to local markets.
4. How does the rupee’s fall affect the average Pakistani?
A weaker rupee makes imported goods more expensive, affecting fuel, electronics, and even food prices, which could lead to inflationary pressure.
5. Is it a good time to invest in gold?
