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The central bank said in its latest weekly update on Thursday that the country’s foreign exchange reserves, held by the SBP, decreased $66 million to $8.15 billion in the week ended January 5, 2024 due to debt repayments. photo: file
KARACHI:
Pakistan’s foreign exchange reserves recorded a modest increase during the week ended February 27, 2026. The State Bank of Pakistan’s foreign currency reserves rose by $87 million to reach $16.3 billion.
When combined with the net foreign reserves held by commercial banks, which stood at $5.134 billion, the country’s total liquid foreign reserves amounted to $21.434 billion. The Pakistani rupee registered a marginal gain of Rs0.01 against the US dollar in the inter-bank market on Thursday, closing at 279.41 compared to 279.42 the previous day.
Gold prices in Pakistan declined, tracking losses in the international market where bullion reversed earlier gains amid rising US Treasury yields and a stronger dollar. Increasing concerns that the escalating conflict in the Middle East could fuel inflation also weighed on investor sentiment.
According to rates issued by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold per tola fell by Rs2,800 to settle at Rs537,162. Similarly, the price of 10 grams of gold decreased by Rs2,401 to Rs460,529. The latest decline comes a day after a sharp fall in the domestic market. On Wednesday, gold prices had dropped by Rs10,000 per tola, settling at Rs539,962.
Silver prices also followed the downward trend in the local market. The price of silver per tola decreased by Rs194 to reach Rs8,810. In the international market, gold prices slipped after earlier gains as investors responded to macroeconomic signals and geopolitical developments. Spot gold fell 0.7% to $5,099.48 per ounce as of 1448 GMT, after earlier touching a high of $5,194.59 during the session. Meanwhile, US gold futures for April delivery declined 0.5% to $5,108.70 per ounce.
Market sentiment remained cautious as the conflict in the Middle East continued to intensify. Reports indicated that the bombing of Tehran had been escalated as the war entered its sixth day, raising fears that prolonged instability in the region could disrupt energy supplies and push inflation higher globally.
At the same time, economic data from the United States also influenced bullion prices. A report from the Federal Reserve indicated that US economic activity expanded slightly in recent weeks, signalling resilience in the world’s largest economy.
Meanwhile, data showed that US weekly jobless claims remained unchanged last week, suggesting continued stability in the labour market. Investors are now awaiting the release of the US employment report for February, scheduled for Friday, which could provide further clues about the Federal Reserve’s monetary policy outlook and its impact on gold prices.
