Pakistan’s foreign exchange reserves rise to $19.81 billion

KARACHI: Pakistan’s total foreign exchange reserves increased by $10 million over the past week, reaching $19.81 billion, according to data released by the State Bank of Pakistan (SBP).

The central bank said that its own reserves rose by $20.7 million, bringing the total to $14.44 billion.

However, commercial banks’ reserves declined by $20.6 million, standing at $5.36 billion.

The SBP stated that the overall improvement in reserves reflects stability in the external account and a steady inflow of foreign exchange during the week.

Meanwhile, gold prices in Pakistan climbed to yet another all-time high on Thursday, tracking a rally in the international market as investors flocked to the safe-haven asset amid renewed US-China trade tensions and rising expectations of rate cuts by the US Federal Reserve.

According to data shared by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold in Pakistan jumped by Rs1,900 per tola, setting a new record high of Rs442,800 per tola.

Similarly, the price of 10 grams of gold rose by Rs1,629, reaching Rs379,629, marking the highest level ever recorded.

On Wednesday, the price of 24-karat gold jumped by Rs5,800 to reach Rs440,900 per tola. The rate for 10-gramme gold had also jumped by Rs4,972 to settle at Rs378,000.

In the international bullion market, the price of gold rose by 19 dollars per ounce, reaching a new peak of 4,217 dollars.

Analysts attributed the surge in gold prices to mounting expectations of US interest rate cuts later this year, which typically make non-yielding assets like gold more appealing.

Federal Reserve Chair Jerome Powell recently signalled a cautious approach to monetary policy, saying the US economy was on a “firmer trajectory,” though the labour market remained weak.

Investors are now widely expecting a 25-basis-point rate cut in both October and December. Geopolitical uncertainty, particularly rising trade tensions between the US and China, has also boosted gold’s appeal as a safe-haven investment.