Forex reserves inch up to $21.74b

Pakistan's foreign exchange reserves held by the State Bank of Pakistan (SBP) posted a marginal increase of $22 million during the week ended March 19, 2026 and reached $16.37 billion. Meanwhile, the country's total liquid foreign reserves stood at $21.74 billion. Of this, $5.36 billion was held by commercial banks, while the central bank accounted for the majority share. In the latest Pakistan Investment Bonds (PIB) auction held on Thursday, the government raised Rs466.2 billion, slightly above the pre-auction target of Rs400 billion, amid continued investor interest in medium- to long-term papers. According to the central bank data, total bids amounted to Rs818.5 billion, with the bulk participation concentrated in the 15-year tenor. The government accepted Rs325 billion for 15-year zero-coupon PIBs at a cut-off yield of 12.40%, reflecting strong demand for longer-duration instruments despite a marginal decline of 37 basis points from the previous auction. In shorter tenors, Rs42.1 billion was raised through two-year bonds at a cut-off yield of 12.50%, up 216 basis points, while Rs65.5 billion was accepted for three-year papers at the same yield, showing an increase of 225 basis points. The five-year tenor saw acceptance of Rs33.6 billion at 12.50%, up 175 basis points. No bids were accepted for the 10-year tenor despite sizable participation, indicating investor preference for either shorter or ultra-long maturities. Moreover, the Pakistani rupee posted a marginal gain against the US dollar in the inter-bank market on Thursday, closing at 279.20, up Rs0.01 from Wednesday's close at 279.21. The US dollar held steady in early Asian trading as investors awaited clarity on potential de-escalation in the US-Israel-Iran conflict and amid reduced expectations of a Federal Reserve rate hike. Furthermore, the price of 24-karat gold per tola decreased by Rs11,000 and it was sold at Rs468,262 compared to Rs479,262 on the previous trading day, reported the All-Pakistan Sarafa Gems and Jewellers Association. The price of 10 grams of 24-karat gold decreased by Rs9,430 to Rs401,459 whereas the price of 10-gram, 22-karat gold went down by Rs8,644 to Rs368,017. The per-tola silver decreased by Rs340 to Rs7,484 whereas the 10-gram silver went down by Rs291 to Rs6,416. Globally, gold prices retreated, hurt by a firmer dollar and higher oil prices that kept inflation fears intact and sustained expectations of elevated interest rates, while market participants reconsidered chances of a Middle East ceasefire. Spot gold was down 1.1% at $4,455.51 per ounce by 1515 GMT. US gold futures for April delivery lost 2.2% to $4,452.20.