The State Bank of Pakistan (SBP) recorded a net foreign exchange (FX) purchase of $473 million during April 2025, reflecting a notable decrease from the $860 million it had intervened with in March. Despite the month-on-month drop of $387 million, the central bank’s FX operations continue to play a central role in managing liquidity and ensuring relative stability in the interbank currency market.
According to official figures, the cumulative FX interventions by the SBP for the current fiscal year, FY25, have now reached $6.66 billion. This positions the central bank’s involvement as one of the most active in recent fiscal cycles, signaling a clear policy direction aimed at managing exchange rate volatility and supporting external account stability.
Since the SBP began publicly disclosing its intervention data in June 2024, total net purchases have accumulated to $7.23 billion. These figures provide greater transparency into the central bank’s monetary policy execution and its approach to dealing with pressure in the foreign exchange market. The published data reflects the central bank’s continuous efforts to guide market sentiment and maintain orderly conditions without resorting to aggressive intervention unless necessary.
Market analysts suggest that the reduced intervention figure in April could be attributed to easing demand pressures or increased foreign inflows, which may have supported the rupee organically during the month. However, others note that with Pakistan still navigating a challenging external position, driven by fluctuating global commodity prices and inconsistent foreign investment inflows, the SBP may continue to maintain an active stance in the FX market when required.
The ongoing interventions by the SBP come at a time when global financial markets remain volatile, with developing economies like Pakistan facing added pressure from geopolitical uncertainties, interest rate shifts in developed markets, and domestic structural imbalances. By intervening selectively, the SBP aims to cushion the local currency from excessive swings while preserving its limited foreign exchange reserves.
Moreover, the central bank’s decision to publish regular updates on its FX operations has been welcomed by economists and financial observers. It offers stakeholders—ranging from commercial banks and exporters to international investors—greater visibility into the SBP’s monetary behavior, potentially improving market confidence.
With the fiscal year moving into its final quarter, all eyes will be on whether the SBP maintains its current pace of FX interventions or scales back depending on macroeconomic trends and external financing availability. The trajectory of the rupee, import bill pressures, remittance inflows, and global oil prices are likely to be decisive factors in shaping future FX market dynamics.
As Pakistan continues its efforts to stabilize its macroeconomic outlook, the role of the State Bank in preserving exchange rate stability remains critical. The coming months will test the central bank’s ability to strike a delicate balance between supporting the currency, controlling inflation, and maintaining external buffers.