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Pakistan’s gold reserves have surged to nearly $9 billion, driven by a global rally in bullion prices. The increase is largely valuation-driven, not due to fresh purchases, but it’s significantly boosting the country’s external buffers.
Gold’s Share in Reserves Jumps Sharply
According to official data, Pakistan’s gold reserves in total now stand at approximately $23.4 billion. Historically, gold made up about one-third of these reserves. However, amid the recent price rally, gold now accounts for almost two-thirds of the total.
This sharp shift reflects the 50% global increase in gold prices throughout 2025. Investors worldwide have been rushing to safe-haven assets amid geopolitical tensions, inflationary pressures, and aggressive central bank buying.
Local Gold Prices Surge
The price of 24-karat gold in Pakistan jumped by Rs 14,100 per tola, reaching Rs 456,900. Similarly, 10 grams of gold rose by Rs 12,089, settling at Rs 391,718. This surge follows global bullion prices touching record levels earlier this week.
Global Market Movement
On the international front, spot gold slipped 2.6% to $4,212.99 per ounce, after hitting an all-time high of $4,378.69. December futures fell 1.8% to $4,225.80 as traders took profit following the historic rally.
Impact on the Rupee and Economy
The Pakistani rupee ended the session at Rs 281.10 per US dollar. Year-to-date, it has weakened by 0.91%, but appreciated 0.95% in the current fiscal year. The valuation boost from gold has provided some support to the currency, offering breathing room to the economy amid fiscal and trade challenges.
While the increase strengthens Pakistan’s financial buffers, it’s crucial to note that this gain stems from price appreciation, not fresh inflows. Nonetheless, rising gold valuations could help stabilize the external position in the short term.
