SBP injects Rs2.06tr, gold crosses Rs473,000/tola and silver surges past Rs7,900/tola on global rally
Nearly 87% of foreign loans were for budget financing and building foreign exchange reserves, which meant that these had not been utilised for creating assets. PHOTO: FILE
KARACHI:
Pakistan’s foreign exchange reserves held by the State Bank of Pakistan (SBP) increased marginally during the week ended December 19, 2025, rising by $16 million to $15,902.5 million from $15,886.5 million a week earlier, official data released by the central bank showed.
The country’s total liquid foreign reserves stood at $21,022.6 million as of December 19. Of this amount, net foreign reserves held by commercial banks were recorded at $5,120.1 million.
During the week, the SBP injected Rs2.063 trillion into the financial system through reverse repo purchase and Shariah-compliant Mudarabah-based open market operations (OMOs) to manage market liquidity.
According to the central bank, a five-day tenor OMO, reverse repo purchase (injection), was conducted on December 26, 2025, under which Rs1.728 trillion was injected against 15 bids. The remaining Rs335 billion was injected through Shariah-compliant Mudarabah-based OMOs.
For the reverse repo purchase of the five-day tenor, the SBP received 15 bids cumulatively offering Rs1,728.75 billion at rates of return ranging between 10.51% and 10.61%. The central bank accepted the full amount against all 15 quotes at a uniform rate of return of 10.51%.
Separately, the SBP also conducted a Shariah-compliant Mudarabah-based OMO for the same five-day tenor. The central bank received four bids offering Rs335 billion at rates of return between 10.53% and 10.57%, and accepted all four quotes at a rate of return of 10.53%.
Meanwhile, the Pakistani rupee posted a marginal gain against the US dollar on Friday, appreciating by 0.01% in the interbank market.
According to SBP data, the local currency closed at 280.17 per dollar, strengthening by three paisa compared with the previous session. The rupee had ended trading at 280.20 against the greenback on Wednesday.
Gold prices in Pakistan rose sharply on Friday, tracking a strong rally in international bullion markets driven by expectations of US interest rate cuts and heightened geopolitical tensions, which boosted demand for safe-haven assets.
In the local market, the price of gold per tola increased by Rs500 to Rs473,362, according to rates released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA). Similarly, the price of 10-gram gold rose by Rs429 to Rs405,831.
The latest increase follows Wednesday’s surge, when gold per tola touched a fresh all-time high of Rs472,862 after gaining Rs2,000 in a single session, underscoring strong upward momentum in domestic bullion prices.
Silver prices also posted a notable increase in the local market, with the per tola rate rising by Rs240 to Rs7,945, reflecting sharp gains in international silver markets.
Globally, spot gold climbed 1.1% to $4,526.92 per ounce, after briefly touching a record high of $4,533.14 earlier in the session. US gold futures for February delivery gained 1.3% to $4,559, according to Reuters.
Silver outperformed other precious metals, breaching the $75 per ounce level for the first time. Spot silver surged 4.5% to $75.20 per ounce by 10:06am ET, after hitting an all-time high of $75.62. The metal is now up 161% year-to-date, supported by persistent supply deficits, its designation as a US critical mineral and strong investment inflows.
