Pakistan's gold reserves tops $9b on back of global rally

Pakistan's gold holdings have emerged as a key driver of the country's strengthening reserves, soaring in value as global bullion prices rally more than 50% in 2025.

According to data from Topline Securities and the State Bank of Pakistan (SBP), the country's gold reserves are now valued at nearly $9 billion, up sharply from previous years. This surge has pushed Pakistan's total reserves, including the liquid foreign exchange assets, to around $23.4 billion, placing them near all-time highs.

"On average, over the last 10 years, gold made up about one-third of Pakistan's liquid reserves. Now, it is closer to two-thirds – a major shift, reflecting how global gold strength is reinforcing Pakistan's external buffers," noted Topline Securities CEO Mohammed Sohail.

Analysts attribute the rally to a combination of global factors: investor flight to safe-haven assets amid geopolitical uncertainty, central bank buying, and sustained inflationary pressures. For Pakistan, the windfall comes as a timely boost to its financial buffers following years of external stress.

While the SBP's gains are largely valuation driven rather than cash inflows, the rising value of gold reserves is cushioning Pakistan's economy and supporting the rupee in the backdrop of lingering fiscal and trade challenges.

Furthermore, gold prices in Pakistan skyrocketed to a new all-time high on Friday, defying the global trend, where bullion slumped amid a stronger US dollar and easing safe-haven demand.

According to data released by the All Pakistan Sarafa Gems and Jewellers Association, the price of 24-karat gold surged by Rs14,100 per tola, reaching a historic high of Rs456,900. Similarly, the 10-gram gold price rose by Rs12,089 to settle at Rs391,718.

In contrast, the international gold market witnessed a sharp pullback, where prices fell by more than 2% after touching a record high of $4,300 per ounce earlier in the session. The decline was triggered by a rebound in the US dollar and remarks by US President Donald Trump, who said that a "full-scale tariff" on China would be unsustainable, easing investor fears of a prolonged trade war.

Spot gold was down 2.6% at $4,212.99 per ounce at 12:39 pm ET (1639 GMT), after scaling an all-time high of $4,378.69 earlier in the session, according to Reuters. The metal breached $4,300/oz for the first time on Thursday, and is set for a weekly gain of about 5%. US gold futures for December delivery were down 1.8% to $4,225.80.

At the end of Friday's trading session, the Pakistani rupee remained stable against the greenback and settled at 281.10. It has depreciated by 0.91% CYTD and appreciated by 0.95% FYTD, according to Ismail Iqbal Securities.