Pakistan’s foreign exchange reserves recorded a slight increase during the past week, offering a modest sign of stability in the country’s external position.
Data released by the State Bank of Pakistan on Thursday showed that reserves held by the central bank rose by $22 million, reaching $16.376 billion for the week ended March 19. The increase, though small, reflects a steady flow of inflows and careful management of external payments.
Overall, the country’s total liquid foreign reserves stood at $21.736 billion. Of this, $5.360 billion was held by commercial banks, highlighting the continued role of the banking sector in supporting foreign currency liquidity.
Bond auction draws strong interest
In a separate development, the central bank raised Rs466.232 billion through its latest auction of fixed-rate Pakistan Investment Bonds, signalling strong investor participation despite prevailing economic uncertainty.
The auction, held on March 26 with settlement due on March 27, attracted total bids worth Rs818.45 billion across five tenors ranging from two to 15 years.
The 15-year bond drew the highest interest, with bids reaching Rs390 billion. This was followed by the 10-year tenor with Rs145.5 billion, the 5-year with Rs105.7 billion, the 2-year with Rs91 billion, and the 3-year with Rs86.25 billion.
Out of the total amount raised, Rs453.45 billion came through competitive bids. The 15-year tenor dominated, with Rs325 billion accepted at a cut-off yield of 12.40 percent.
The 3-year and 2-year bonds saw accepted bids of Rs60.75 billion and Rs38 billion respectively, both at a cut-off yield of 12.50 percent. The 5-year tenor brought in Rs29.7 billion at the same yield.
Interestingly, the central bank rejected all competitive bids for the 10-year bond, suggesting that offered rates may not have aligned with its expectations.
An additional Rs12.782 billion was secured through non-competitive bids, mainly in the 2-year, 3-year and 5-year tenors.
The latest auction reflects continued investor appetite for government securities, particularly in longer-term instruments, as market participants seek to lock in returns amid interest rate uncertainty.
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