KARACHI: Pakistan’s total foreign exchange reserves rose by $10 million over the past week, reaching $19.81 billion, according to the latest data released by the State Bank of Pakistan (SBP).
The SBP reported that its own reserves increased by $20.7 million, bringing the total to $14.44 billion, while commercial banks’ reserves fell by $20.6 million, now standing at $5.36 billion.
The central bank stated that the overall improvement in reserves reflects stability in the external account and continued foreign exchange inflows, suggesting that Pakistan’s financial position remains steady despite global economic volatility.
Gold Prices Reach Historic Levels
In a parallel development, gold prices in Pakistan soared to record highs, tracking gains in the international bullion market. The surge was driven by investors seeking safe-haven assets amid renewed US-China trade tensions and growing expectations of US Federal Reserve rate cuts.
According to figures released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of 24-karat gold climbed by Rs1,900 per tola, setting a new all-time high of Rs442,800 per tola. Similarly, the price of 10 grams of gold rose by Rs1,629, reaching Rs379,629 — the highest level ever recorded in the domestic market.
A day earlier, on Wednesday, gold prices had already jumped sharply, with 24-karat gold increasing by Rs5,800 per tola to reach Rs440,900, and 10-gram rates rising by Rs4,972 to Rs378,000.
Global Bullion Market Surge
On the international front, gold prices rose by $19 per ounce, hitting a new record of $4,217 per ounce. Analysts attribute this rally to mounting expectations that the US Federal Reserve will begin cutting interest rates later this year — a move that typically enhances gold’s appeal as a non-yielding asset.
Federal Reserve Chair Jerome Powell recently signaled a cautious approach to monetary policy, stating that the US economy remains on a “firmer trajectory,” though labour market conditions continue to show signs of weakness.
Market analysts now anticipate two potential 25-basis-point rate cuts in October and December, which could further push investors toward gold. Additionally, geopolitical uncertainty — particularly escalating trade tensions between the United States and China — has reinforced gold’s position as a safe-haven investment.
The simultaneous rise in Pakistan’s reserves and gold prices reflects a complex interplay between domestic financial stability and global market forces, with analysts warning that volatility in the international arena could continue to influence both exchange and commodity markets in the weeks ahead.
