Today Market News | Pakistan Currency Exchange & Forex Analysis

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Reserves reach $21.3bn

The country’s foreign exchange reserves rose to $21.293 billion during the week ended Jan 23, announced the State Bank of Pakistan on Thursday. The SBP forex holdings increased by $13 million to $16.101bn.

Next budget targets 5.1% GDP growth

The federal government has set key priorities for the 2026-27 federal budget, aiming for a GDP growth target of 5.1% and keeping inflation under 6.5%, while highlighting green development, climate action, and enhanced disaster management as central themes.

Pakistan committed to closer EU ties, trade expansion under GSP+: PMNext budget targets 5.1% GDP growth

Raimun-das Karoblis, Ambassador of the European Union to Pakistan, calls on Prime Minister Shehbaz Sharif, said a statement issued by the Prime Minister’s Office on Thursday. Talking to the ambassador, the prime minister said Pakistan is committed to working closely with the EU on mutually beneficial trade enhancement initiatives, especially through the GSP Plus. Welcoming the EU Ambassador, who assumed his responsibilities in Pakistan only a few months ago, Sahrif reaffirmed Pakistan’s commitment to further strengthen cooperation with the EU in all areas of mutual interest, particularly trade, investment, development, security, migration and climate change

Avanceon Limited secures $9mn projects in Pakistan

Avanceon Limited (AVN), a Pakistani technology company headquartered in Lahore, announced on Thursday the acquisition of high-value projects worth $9 million in Pakistan’s Energy, Infrastructure, and Hospitality sectors.

April 19, 2019

EPD Circular Letter No. 07 of 2019

The Presidents/Chief Executives of all Authorized Dealers in Foreign Exchange

Dear Sirs/Madam,

Clarification relating to Foreign Currency Accounts

Attention of Authorized Dealers is invited to the second proviso of sub-section (4) of the Section (5) of the Protection of Economic Reforms Act (PERA), 1992 which, interalia, states as under:

“provided that no cash shall be deposited in an account of a citizen of Pakistan resident in Pakistan, unless the account holder is a filer as defined in the income Tax Ordinance, 2001 (XLIX of 2001)”

2. It has come to our notice that some Authorized Dealers are not allowing non-residents to open and maintain foreign currency accounts on the pretext that they are not appearing as ‘filer’ in the Active Taxpayer’s List of FBR.

3. However, it is evident from the aforementioned Proviso that the instructions, contained therein, are not applicable to non-residents.

4. An updated copy of the PERA, 1992 is enclosed herewith for information and meticulous compliance.

Encl: As above.

Yours truly,

Sd/-
(Arshad Mehmood Bhatti) Director

FAQ'S

Pakistan’s currency and forex market are influenced by foreign exchange reserves, inflation trends, trade balance, fiscal policies, global economic conditions, and investor sentiment.

Foreign exchange reserves help stabilize the currency, support external payments, strengthen economic confidence, and protect the economy during global or regional financial volatility.

Budget targets such as GDP growth and inflation influence market expectations, investment decisions, currency outlook, and overall economic planning.

Trade relationships, export growth, and preferential agreements like GSP+ play a key role in strengthening foreign earnings, supporting reserves, and improving economic resilience.

Private-sector investments and project wins reflect business confidence, support employment, and contribute to economic growth and long-term market stability.

Global interest rates, commodity prices, geopolitical developments, and international financial trends directly influence currency movements and market sentiment in Pakistan.

The State Bank of Pakistan manages monetary policy, oversees foreign exchange reserves, and works to maintain financial stability in the currency and banking system.

Market conditions and economic indicators can change frequently based on domestic developments, policy decisions, and global financial events.