Pakistan’s Gold Reserves Increase By $3.5 Billion in 7 Months

KARACHI, February 17, 2026 — In a major boost to Pakistan’s external economic buffers, the State Bank of Pakistan (SBP) has reported a record-breaking increase in the value of the country’s gold reserves. Over the first seven months of the current fiscal year (July 2025 – January 2026), the total value of these holdings surged by $3.5 billion, providing a significant cushion against global financial volatility.

1. The Current Valuation and Figures

As of February 2026, the SBP has confirmed that Pakistan’s gold reserves have reached a historic milestone. The data highlights a sharp upward trajectory from the previous year:

• Total Valuation: The value of Pakistan’s gold reserves now stands at $10.374 billion, up from $6.84 billion in June 2025.

• Monthly Jump: In January 2026 alone, the reserves saw a massive appreciation of $1.279 billion.

• Quantity: The country maintains approximately 64.76 tons (roughly 2.08 million ounces or 5.5 million tolas) of gold.

2. Driving Forces: Why the Value is Skyrocketing

The $3.5 billion increase is primarily driven by global market dynamics rather than the physical purchase of new bullion.

• Global Gold Rally: International gold prices have faced a “bullish run” due to geopolitical tensions in the Middle East and Eastern Europe, pushing investors toward “safe-haven” assets.

• De-dollarization Trends: As major central banks worldwide shift away from US dollar-denominated assets, the intrinsic value of gold has soared, benefiting countries with significant existing holdings like Pakistan.

• Safe Haven Demand: Investors are increasingly moving capital from volatile stocks and crypto markets into gold and silver to hedge against persistent global inflation.

3. Strategic Economic Impact

This windfall has fundamentally altered the composition of Pakistan’s total liquid reserves, strengthening the nation’s “external buffers.”

Economists note that because gold now makes up nearly two-thirds of Pakistan’s reserve assets, the country is better protected against currency fluctuations and external debt pressures.

4. Market Sentiment and Future Outlook

While the SBP and government officials view the $3.5 billion increase as a sign of economic stability, market analysts suggest caution:

• Jewellery vs. Investment: Local demand in Pakistan has shifted from traditional jewellery to investment bars and coins as prices reach historic peaks (crossing Rs. 520,000 per tola).

• Correction Risks: Analysts at the World Gold Council suggest that while the long-term outlook remains bullish (with targets near $5,000/oz by late 2026), short-term price corrections could occur if global central banks stabilize their monetary policies.

5. Conclusion

The $3.5 billion surge in gold reserves represents a “windfall” for Pakistan’s economy at a critical time. By leaning on the intrinsic value of precious metals, the State Bank has managed to push total reserves near all-time highs, offering a rare moment of financial breathing room amidst a challenging global economic climate.