Karachi, December 14, 2025 – The International Monetary Fund (IMF) has intensified oversight of Pakistan’s foreign exchange market by instructing the State Bank of Pakistan (SBP) to provide daily reports of FX market activity.
This move comes as part of the IMF’s efforts to monitor currency stability and ensure transparency in Pakistan’s external sector.
What the IMF Wants From SBP
The IMF’s country report on Pakistan specifies that SBP must report daily data across multiple dimensions of the FX market, including:
📊 Exchange Rates and Market Activity
• Market buying and selling rates
• Weighted average customer exchange rate
• Monthly trade volume
• High and low exchange rates in the interbank and KERB markets
💱 SBP Foreign Exchange Operations
• Details of interventions in the market, including spot transactions and forward contracts
• Swap/forward operations against the domestic currency
• End-of-day positions and daily transaction summaries for all FX operations
🏦 Interbank Market Transactions
Spot Market (USD)
• Total value transacted in USD
• Number of transactions and banks involved
• Average transaction value and price (simple and weighted)
• Standard deviations of transaction values and prices
Forward Market (USD)
• Total value transacted and number of transactions
• Banks involved and average transaction values
• Average maturity and standard deviation of maturities
🏛 Commercial Banks and Customer Transactions
• Aggregate customer FX transactions, broken into gross sales and purchases
• Pending dividend/profit payments cleared for execution
• Breakdown of swap/forward contracts by counterparties, short and long positions
• Outstanding swap/forward positions categorized by maturity buckets
Why This Daily Monitoring Matters
Experts say the IMF’s daily reporting requirement aims to:
• Enhance transparency in Pakistan’s FX market
• Track interbank and retail FX liquidity in real time
• Monitor SBP interventions to stabilize the rupee
• Identify early signs of currency volatility
• Support data-driven policy decisions for monetary management
📌 The daily reports will also help the IMF evaluate the effectiveness of Pakistan’s external sector policies and compliance with the ongoing economic program.
Implications for Pakistan’s Economy
• Increased scrutiny on FX transactions may affect currency speculation
• Banks and corporates may adjust hedging strategies in forward and swap markets
• Potential improvements in market confidence if transparency leads to stability
• Real-time reporting allows quicker policy responses by SBP to manage liquidity and volatility
What Will Be Tracked Daily?
✔ Market exchange rates (spot & weighted average)
✔ Interbank and KERB high/low rates
✔ SBP interventions (spot, forward, swap)
✔ Interbank spot and forward market volumes & transactions
✔ Customer FX transactions and pending dividend/profit payments
✔ Swap/forward positions and maturity breakdown
Bottom Line
The IMF’s decision to monitor Pakistan’s foreign exchange market on a daily basis reflects a strong push for transparency and stability. As the SBP complies with reporting requirements, real-time data may play a pivotal role in stabilizing the rupee and enhancing market confidence in the months ahead.