Karachi – July 18, 2025:

Pakistan’s total foreign exchange reserves slipped by \$71.6 million to \$19.96 billion for the week ending July 11, 2025, despite a \$23 million rise in SBP-held reserves to \$14.53 billion. Meanwhile, commercial bank reserves dropped to \$5.43 billion, showing a \$95 million decline.

The SBP conducted dual Open Market Operations (OMOs), injecting Rs902.5 billion liquidity—Rs37.39 billion through a Shariah-compliant OMO and Rs865.13 billion via a conventional reverse repo. The OMO returns hovered around 11.08%–11.13% for both modes.

In the July 16 PIBs auction, the government raised Rs311.82 billion, outpacing its Rs300 billion target, mostly through 5-year bonds. Cut-off yields dropped significantly across all tenors—by 19 to 54 bps—highlighting strong investor confidence and hopes for a policy rate cut due to easing inflation.

The PKR remained stable at 284.97 per USD, down by just one paisa, while gold prices fell by Rs900 per tola to Rs355,100, following global bullion weakness. Analysts say \$3,300 is acting as strong support for gold prices internationally, with resistance levels at \$3,350 and beyond.