Debt Payments
KARACHI: The State Bank of Pakistan (SBP) recently reported a decline of $367 million in its foreign exchange reserves due to external debt repayments. As of April 18, the SBP’s reserves stood at $10.21 billion.
This decrease in reserves follows a broader trend, as the country’s total liquid foreign reserves now amount to $15.44 billion, with $5.23 billion held by commercial banks.
According to Arif Habib Limited’s Research Head, Sana Tawfiq, this drop mirrors the earlier decline of $540 million in reserves recorded by the SBP on March 21, 2025.
The SBP confirmed that the $367 million reduction in reserves was directly linked to payments related to external debt. These regular debt settlements have contributed to the downward pressure on the country’s foreign reserves.
In addition to the decrease in foreign exchange reserves, the Pakistani rupee experienced a weakening against the US dollar. On April 18, 2025, the rupee slipped by 0.04%, settling at 281.07 per US dollar in the inter-bank market.
This marks the rupee’s lowest level in over a year, the last time this happened being in January 2024. This recent depreciation came after a brief period of optimism in the global market, which had seen some recovery in the US dollar following President Donald Trump’s decision to back down from threats to fire the head of the Federal Reserve and his softened approach towards China.
Meanwhile, gold prices in Pakistan remained stable, reflecting the lack of significant movement in international gold markets. According to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold per tola remained unchanged at Rs352,000, with 10 grams of gold priced at Rs301,783.
This stability follows a previous fluctuation when gold prices dropped by Rs11,700 in one session but managed to stabilize thereafter.
Globally, gold prices also held steady, with spot gold priced at $3,321.09 per ounce. Despite this stability, the precious metal had seen a significant dip of more than 3% during the previous session. This was attributed to the fluctuating value of the US dollar and a lack of major market-moving developments.
Gold prices had previously hit a record high of $3,500.05 on concerns over the US economy, but the market’s rebound was driven by a more subdued dollar and ongoing attention to the US-China trade situation.
