The State Bank of Pakistan (SBP) has actively purchased dollars to strengthen the country’s foreign exchange buffers.
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This strategy helps avoid excessive rupee appreciation while rebuilding external reserves amid improving economic conditions.
Massive Net Purchases Recorded
From June 2024 to December 2025, the SBP carried out net foreign exchange interventions totaling $12.4 billion.
In December 2025 alone, it bought a net $1.024 billion from the inter-bank market. Data from Arif Habib Limited and Taurus Securities confirm the central bank’s consistent presence as a buyer.
First Half of FY26 Shows Strong Activity
During the first half of fiscal year 2026, SBP purchases reached $4.15 billion.
These moves reflect stronger remittance inflows, relatively controlled imports, and support from the IMF programme. The central bank is absorbing dollar liquidity to smooth exchange rate volatility.
Rupee Remains Stable
The Pakistani rupee posted a marginal gain, closing at 279.15 against the US dollar on Tuesday. It rose by Rs0.01 from the previous day’s close of 279.16.
SBP Governor has repeatedly stated that these purchases align with the objective of rebuilding reserves without triggering sharp fluctuations in the currency.
Cautious Outlook Amid Global Risks
Economists note that continued reserve buildup depends on sustained external inflows and disciplined macroeconomic policies.
Global risks, including oil price volatility and geopolitical tensions such as the Israel-US conflict with Iran, could pose challenges ahead. The US dollar index recently hit highs due to safe-haven demand.
Pakistan’s approach demonstrates a shift from earlier periods of selling pressure to proactive reserve management.
This intervention policy supports overall economic stability and enhances the country’s ability to handle external shocks.