Pakistan’s total foreign exchange reserves grew by $10 million over the past week, reaching $19.81 billion, according to official data released by the State Bank of Pakistan (SBP).
Reserve Breakdown
The central bank’s holdings increased by $20.7 million, bringing SBP reserves to $14.44 billion. However, commercial banks experienced a decline of $20.6 million, with their reserves now standing at $5.36 billion.
SBP officials attributed the overall improvement to sustained external account stability and consistent foreign exchange inflows throughout the reporting period, signaling positive momentum in Pakistan’s balance of payments position.
Gold Prices Surge to Record Highs
Simultaneously, gold prices in Pakistan reached unprecedented levels on Thursday, mirroring international market trends as investors sought safe-haven assets amid escalating US-China trade tensions and anticipated Federal Reserve rate cuts.
Data from the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA) shows gold jumping Rs1,900 per tola to a record Rs442,800, while 10-gram prices rose Rs1,629 to Rs379,629. This follows Wednesday’s dramatic Rs5,800 increase that pushed prices to Rs440,900 per tola.
International Market Dynamics
Global gold prices climbed $19 per ounce to reach $4,217, driven by mounting expectations of US interest rate reductions. Federal Reserve Chair Jerome Powell recently indicated a measured monetary policy approach, noting economic improvement despite labor market weakness.
Market analysts anticipate 25-basis-point rate cuts in both October and December, making non-yielding assets like gold more attractive to investors. Geopolitical uncertainty, particularly intensifying trade disputes between Washington and Beijing, has further strengthened gold’s appeal as a protective investment vehicle during economic volatility.
