Foreign reserves edge up to $22.5b

SBP's holdings rise $25m; gold prices surge despite global dip

KARACHI:

Pakistan's total liquid foreign exchange reserves edged higher to $22.5 billion as of August 13, 2026, according to the latest weekly data released by the State Bank of Pakistan (SBP) on Thursday.

The foreign reserves held by the central bank increased by $25 million, reaching $17.1 billion. However, the net foreign reserves with commercial banks declined by approximately $17 million to $5.4 billion.

As a result, the country's overall liquid foreign reserves rose by about $7.8 million compared to the previous week. The current reserves provide roughly 2.55 months of import cover.

Furthermore, the Pakistani rupee closed the day at 277.57, a gain of Rs0.03 against the greenback after settling at 277.60 on Wednesday, while the US dollar nursed steep losses globally on Thursday and hovered near three-month lows.

Meanwhile, gold prices rose sharply in the Pakistani market even as international rates edged lower, driven by local demand and currency factors. According to the All-Pakistan Gems and Jewellers Sarafa Association, the price of gold per tola climbed to Rs471,936 after a surge of Rs13,700 during the day. Ten-gram gold was quoted at Rs404,609, up Rs11,746.

In the global market, spot gold was down 0.3% at $4,509.91 per ounce by 12:15 pm EDT (1615 GMT), as per Reuters. The metal retreated from its highest level since June 2 after traders booked profits from the previous session's strong gains. Spot gold had surged more than 4% on Wednesday. A rise in oil prices also shifted attention towards inflation risks. Oil prices extended gains to a three-week high, while minutes from the US Federal Reserve's July meeting highlighted deepening inflation concerns. Silver prices in the local market advanced by Rs369 to Rs7,169 per tola.

Market analyst Adnan Agar, Director at Interactive Commodities, noted that gold prices recovered strongly. "It reached a high of $4,540, and the market was later standing at $4,450," he said. Agar pointed to strong resistance near the $4,600 level and said any correction was likely to be limited, possibly down to $4,400 at most. "Overall, its trend is good and running perfectly. The chances are for the upside, and currently the environment is quite favourable for it, so the market will remain slightly on the upside," he added. Moreover, Indian firm Aditya Birla Capital announced that it was entering the gold loan market and planned to open about 1,000 dedicated branches over the next three years to expand its secured lending business.