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KARACHI:
The State Bank of Pakistan (SBP) reported a marginal decline in its foreign exchange reserves for the week ending May 30, 2025, with holdings falling by $7 million to $11.5 billion. Total liquid foreign reserves stood at $16.6 billion, including $5.1 billion held by commercial banks.
The slight dip comes as Pakistan continues to navigate external debt repayments and manage its current account as the country relies on inflows from multilateral institutions and overseas remittances to strengthen its external sector.
As part of its liquidity management, the SBP also released its auction calendar for government securities from June to August 2025, targeting Rs4.35 trillion in borrowing. This includes auctions for Market Treasury Bills (MTBs), fixed-rate Pakistan Investment Bonds (PIBs), and floating-rate PIBs.
The total maturing amount for MTBs during this period is Rs3.063 trillion, while the SBP has set a slightly lower auction target of Rs2.85 trillion. The issuance is spread across tenors: Rs750 billion each for 1-month and 3-month papers, Rs625 billion for 6-month, and Rs725 billion for 12-month instruments.
For longer-term financing, the SBP plans to raise Rs900 billion via fixed-rate PIBs — Rs300 billion for 2-year bonds and Rs150 billion each for 3-, 5-, 10-, and 15-year tenors. An additional Rs600 billion will be raised through 10-year floating-rate PIBs. The grand total of all planned auctions stands at Rs4.35 trillion, reflecting the government’s financing requirements and the SBP’s liquidity management strategy.
Meanwhile, domestic bullion prices surged on Thursday, tracking international market gains driven by safe-haven demand. However, gains in gold were later pared after news of a phone conversation between Chinese President Xi Jinping and US President Donald Trump signalled a possible thaw in trade tensions.
The price of 24-karat gold rose by Rs4,300 per tola to Rs358,400, according to the All-Pakistan Gems and Jewellers Sarafa Association. Ten-gram gold rose by Rs3,687 to Rs307,270. The metal had remained flat a day earlier at Rs354,100 per tola.
Silver also gained strongly, hitting a 13-year global high as it crossed $35 per ounce. In the local market, silver prices rose by Rs159 to Rs3,745 per tola.
Adnan Agar, Director at Interactive Commodities, said gold traded between $3,360 and $3,403 globally. “Tomorrow’s US non-farm payroll data will be key in setting gold’s direction,” he noted, adding that “The Xi-Trump call has sparked speculation about easing trade tensions. Trump is expected to hold a press conference in the next few hours. If there’s any positive announcement, gold could ease further.”
The rupee also posted a mild gain, appreciating by 0.02% to close at 282.17 against the US dollar, up five paisas from the previous day.
