Pakistan’s foreign reserves have surged thanks to a dramatic increase in gold valuations, reinforcing the country’s economic buffer amid global uncertainty. According to new figures from State Bank of Pakistan (SBP) and Topline Securities, Pakistan’s gold holdings are now worth nearly $9 billion, driving total liquid reserves up to around $23.4 billion. The Express Tribune
Why the Jump?
The surge reflects a steep climb in global bullion prices—up over 50 % in 2025—which has elevated the role of gold in Pakistan’s reserve mix. Typically accounting for about one-third of reserves over the past decade, gold now represents closer to two-thirds of liquid buffers. The Express Tribune Analysts attribute this shift to investors rushing into safe-haven assets amid geopolitical turbulence, major central bank purchases, and persistent inflation. Profit by Pakistan Today
Domestic Impact
While the valuation gains are largely from rising prices—not fresh gold imports—the effect on Pakistan’s economy is meaningful:
- The strengthening reserve position supports the rupee and external buffer against shocks. The Express Tribune
- The price of 24-karat gold in Pakistan soared to a record Rs 456,900 per tola, and 10-gram gold jumped to Rs 391,718, reinforcing household wealth effects. Profit by Pakistan Today
- The shift signals greater resilience for Pakistan’s external account, especially after years of stress.
The Bigger Picture
Despite the promising figures, experts caution that price-driven gains don’t replace sustainable inflows or structural reform. Pakistan remains vulnerable to trade shocks, fiscal deficits and volatile commodity cycles. Arab News But the current gold-led boost gives policymakers more breathing room.
“Gold making up closer to two-thirds of our liquid reserves is a major shift,” said Mohammed Sohail, CEO of Topline Securities. The Express Tribune
Bottom line: Pakistan’s gold windfall isn’t just a headline figure—it’s a meaningful reinforcement of its reserves at a critical juncture. The challenge ahead: translate this temporary boost into long-term stability via reforms, diversifying inflows, and strengthening economic fundamentals.
