Gold prices continue record-breaking rally in Pakistan

KARACHI: Gold prices in Pakistan continued their record-breaking rally, with the per tola rate soaring by Rs2,550 to reach an all-time high of Rs317,350 on Tuesday.

According to the All Pakistan Sarafa Gem and Jewellers Association (APSGJA), the price of 24-carat gold per 10 grams also jumped by Rs2,186 to Rs272,076, while 22-carat gold was priced at Rs249,412 per 10 grams after an increase of Rs2,004.

On March 17, gold had already reached a historic peak of Rs314,800 per tola after rising by Rs1,100, while the 10-gram rate increased by Rs943 to Rs269,890 for 24-carat and Rs865 to Rs247,408 for 22-carat gold.

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Earlier, on March 14, gold had seen a significant jump of Rs4,700 per tola, hitting Rs314,000, with 10-gram prices increasing by Rs4,030 to Rs269,204 for 24-carat and Rs3,694 to Rs246,779 for 22-carat.

Meanwhile, the Pakistan Stock Exchange maintained its bullish momentum, climbing 801.50 points (0.69%) to close at 117,001.09, driven by positive sentiment amid promising economic developments, analysts said.

The positive sentiment was largely driven by encouraging economic developments.

As per the media reports, the IMF has permitted Pakistan to borrow Rs1.25 trillion ($4.5 billion) from domestic banks to help manage the Rs2.4 trillion circular debt in the power sector increasing public debt, Topline Securities stated.

“Investors’ confidence was further lifted as the IMF shared a draft of the Memorandum of Economic and Financial Policies (MEFP) with Pakistani authorities, marking progress towards a staff-level agreement under the $7 billion Extended Fund Facility (EFF). This reinforced hopes for sustained financial support and economic stability,” Topline Securities stated.

The index gains were primarily fueled by FFC, ENGROH, HUBC, TRG, and LUCK, which collectively added 541 points.

“The positive momentum comes from improved investors’ confidence, driven by a mix of encouraging economic developments in Pakistan. The biggest factor is the IMF’s approval, allowing Pakistan to borrow from banks to help reduce the power sector’s circular debt,” Al Habib Capital note stated.