SBP Returns to Aggressive Rupee Defense; Injects Over $2 Billion in Two Months.

The State Bank of Pakistan (SBP) has returned to an aggressive stance to defend the

The State Bank of Pakistan (SBP) has returned to an aggressive stance to defend the national currency, with foreign exchange interventions surging to a year-high during the final quarter of 2025. Recent data shows a dramatic shift from earlier months of restraint, with the central bank injecting over $1 billion into the interbank market in both September ($1,023M) and October ($1,033M) 2025. This “U-shaped” trend in market activity highlights that despite ongoing structural reforms, the Rupee remains highly sensitive to seasonal dollar demand and external economic shocks.

While these billion-dollar interventions helped stabilize the Rupee in the short term, they have also sparked a debate regarding the long-term sustainability of foreign exchange reserves. Current spending levels are significantly above the historical average, leading to questions about how long the SBP can maintain this high-volume support without drawing down precious liquid assets, which recently crossed $16 billion. As the winter season progresses, the market is closely watching whether the central bank will continue its active defense or allow the Rupee to find a new equilibrium to preserve the country’s reserve levels.