Reserves rise to $16.1b on $46m boost

Pakistan's total liquid foreign reserves increased by $46 million to reach $16.1 billion. As of January 31, 2025, Pakistan's total liquid foreign reserves stood at $16,044.1 million, according to the State Bank of Pakistan (SBP). These reserves included $11,418.3 million held by the SBP and $4,625.8 million held by commercial banks. During the week ending January 31, SBP reserves increased by $46 million, reaching $11,418.3 million. Moreover, the SBP conducted an Open Market Operation (OMO) through a Reverse Repo Purchase (Injection) on February 6, 2025, injecting Rs1.1 trillion into the market. A total of nine quotes were received for a 4-day tenor, with an interest rate range of 12.11% to 12.05%. As per the OMO result, the SBP accepted Rs1,056.5 billion against the total offered amount of Rs1,094.8 billion for a 7-day tenor at an accepted rate of return of 12.07% per annum. A total of six quotes were accepted in this operation. Meanwhile, after reaching an all-time high in the previous session, gold prices in Pakistan experienced a minor correction on Thursday as the market anticipates a more significant adjustment. The price of gold per tola fell by Rs900, settling at Rs298,700, while 10-gram gold dropped by Rs772 to Rs256,087, according to data from the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA). This decline follows a sharp increase of Rs5,300 per tola on Wednesday, when gold surged to Rs299,600 due to heightened investor interest amid ongoing trade tensions between the United States and China. In the global market, gold prices also dipped on Thursday. According to APGJSA, the international rate stood at $2,859 per ounce, marking a $9 decrease for the day. According to Adnan Agar, Director of Interactive Commodities, the current drop in gold prices represents a mild correction, but a more significant correction is yet to be seen. However, he noted that in a bullish market, corrections can sometimes be delayed or may not happen at all. Additionally, he highlighted the importance of the upcoming US Non-Farm Payroll (NFP) employment data, set to be released tomorrow. This data will play a crucial role in shaping market sentiment and could influence gold prices in the coming days. Globally, gold prices slid 1% on Thursday as the US dollar firmed ahead of a key jobs report and investors booked profits after bullion recorded consecutive record peaks in the previous five sessions on the back of escalating trade tensions between the US and China. Spot gold slipped 1% to $2,835.31 per ounce after hitting an all-time high of $2,882.16 on Wednesday. US gold futures dropped 1.3% to $2,856.30. Furthermore, the Pakistani rupee saw a slight decline against the US dollar, depreciating 0.07% in the interbank market on Thursday. By the end of the trading session, the rupee settled at 279.15, marking a loss of 19 paisa against the greenback, as per data from the State Bank of Pakistan (SBP). On Tuesday, the rupee had closed at 278.96, while the currency market remained closed on Wednesday due to the Kashmir Day holiday.

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