Pakistan’s foreign exchange reserves have dipped again as the State Bank of Pakistan (SBP) reported a $72 million decline, bringing its holdings down to $14.23 billion. The fall was mainly attributed to scheduled external debt repayments.
Data released on Thursday showed commercial banks’ net foreign exchange reserves remained stable at $5.26 billion, leaving the country’s total liquid reserves at $19.50 billion.
The Pakistani rupee, however, made a slight recovery, appreciating 0.04% against the US dollar. It closed at 282.56 in the interbank market, up by Rs0.11 from the previous day’s close of 282.67.
Globally, the US dollar weakened against major currencies as expectations of Federal Reserve interest rate cuts grew, coupled with concerns over rising political influence in key US institutions. The euro strengthened ahead of peace talks scheduled next week aimed at addressing the Russia-Ukraine conflict.
Meanwhile, gold prices in Pakistan surged sharply, mirroring the international trend. Global safe-haven demand spiked after US President Donald Trump’s new tariffs came into effect and weak US jobs data boosted hopes for a rate cut.
Locally, gold prices jumped by Rs2,900 per tola to settle at Rs362,200, while 10 grams traded at Rs310,528, marking a day-on-day rise of Rs2,487, according to the All Pakistan Sarafa Gems and Jewellers Association.
This followed Wednesday’s increase of Rs1,300 per tola, pushing prices to Rs359,300. Adnan Agar, Director at Interactive Commodities, linked the surge to “the intensifying global tariff war,” noting that international prices could target $3,440–3,450 if they close above $3,400.
In the international market, spot gold rose 0.6% to $3,388.09 per ounce, hitting its highest level since July 23, while US gold futures gained nearly 0.7% to $3,455.60.
Adding to the bullish momentum, China’s central bank reported its ninth consecutive month of gold purchases in July, lifting its reserves to 73.96 million fine troy ounces, valued at $243.99 billion.
