Pakistan’s gold reserves have recorded a significant increase during the first seven months of Fiscal Year 2025-26 (FY26), reflecting improved reserve valuation and strengthening external stability.

According to data released by the State Bank of Pakistan (SBP), the total value of Pakistan’s gold reserves has reached $10.374 billion, marking a cumulative increase of $3.5 billion since the start of the fiscal year.

This development is widely searched online under keywords such as:

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In this detailed article, we explain:

How much gold Pakistan holds
Why reserves increased
January 2026 performance breakdown
Comparison with June 2025
Impact on economy and rupee
What this means for investors
Frequently Asked Questions

Pakistan’s Gold Reserves Reach $10.374 Billion

As per the SBP data, Pakistan’s gold reserves now stand at:

Total Value: $10.374 billion
Total Increase in FY26: $3.5 billion
Increase in January 2026 Alone: $1.279 billion

This shows that a major portion of the increase came during January 2026.

How Much Gold Does Pakistan Hold?

Pakistan currently holds:

64.76 tons of gold
Equivalent to 2.082 million ounces
Or approximately 5.552 million tolas

Despite the quantity remaining stable, the total value has increased significantly due to rising global gold prices.

Comparison with June 2025

In June 2025:

Gold reserves were valued at $6.84 billion

Now in February 2026:

Gold reserves stand at $10.374 billion

This means:

$3.534 billion growth in seven months
Over 50% increase in reserve valuation

The rise is primarily driven by global gold price appreciation rather than new gold purchases.

Why Did Pakistan’s Gold Reserves Increase?

The increase is mainly due to the following factors:

1️⃣ Rising International Gold Prices

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Gold prices have surged globally due to:

Geopolitical tensions
Inflation concerns
Global economic uncertainty
Central bank buying trends

When international gold prices rise, the valuation of Pakistan’s existing gold holdings automatically increases.

2️⃣ Strong Central Bank Reserve Management

The State Bank of Pakistan manages reserves carefully by:

Diversifying assets
Maintaining gold holdings
Monitoring global market trends

Gold acts as a hedge against currency fluctuations and economic instability.

3️⃣ Weak Dollar in Certain Periods

Gold prices usually rise when the US dollar weakens. Any dollar fluctuations affect gold valuation in international markets.

How Gold Reserves Strengthen Pakistan’s Economy

Gold reserves are an important part of foreign exchange reserves. Their increase helps in:

✔ Improving External Stability

Higher reserve value strengthens Pakistan’s financial position.

✔ Supporting the Pakistani Rupee

Strong reserves build confidence in currency markets.

✔ Enhancing Investor Confidence

International investors look at reserve strength before investing.

✔ Reducing Default Risk Perception

Higher reserves reduce sovereign risk concerns.

Gold Reserves vs Foreign Exchange Reserves

It is important to understand the difference:

Gold reserves = Physical gold holdings valued at market prices
Foreign exchange reserves = Dollars, euros, SDRs, and other currencies

Gold is part of total foreign exchange reserves but acts as a safe asset during crises.

January 2026 – A Major Boost Month

The SBP data shows:

$1.279 billion increase in January 2026 alone

This suggests that international gold prices experienced a strong rally during that month, significantly increasing valuation.

This sharp monthly gain contributed heavily to the overall $3.5 billion growth.

Is Pakistan Buying More Gold?

Currently, there is no official confirmation that Pakistan purchased additional gold in large quantities.

The increase appears to be valuation-driven rather than volume-driven.

Pakistan’s gold quantity remains at:

64.76 tons

So, the growth is price-based rather than accumulation-based.

Global Gold Trends in 2026

Globally, central banks have been:

Increasing gold holdings
Reducing reliance on dollar reserves
Diversifying reserve portfolios

Countries worldwide are turning to gold due to:

Inflation fears
Banking sector uncertainties
Global debt risks

This trend supports higher gold prices, benefiting countries like Pakistan that already hold gold reserves.

What This Means for Pakistani Investors

If gold prices remain strong:

Local gold rates in Pakistan may stay elevated
Investors may consider gold as a hedge
Jewellery prices may remain high

Search trends such as:

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Should I invest in gold Pakistan?

Are increasing due to global price momentum.

Impact on Pakistani Rupee

Higher gold reserve valuation:

Improves overall reserve figures
Strengthens external account position
Supports currency stability

While it does not directly increase dollar liquidity, it improves reserve strength perception.

Economic Outlook After Reserve Increase

The rise in gold reserves sends positive signals:

🔹 Improved Balance Sheet

Higher reserve value strengthens Pakistan’s central bank balance sheet.

🔹 Credit Rating Impact

Strong reserves may positively influence rating agencies.

🔹 IMF Negotiation Strength

Stronger reserves provide better financial standing in international negotiations.

Risks & Challenges

Despite the positive increase, some risks remain:

Gold prices are volatile
If international prices fall, reserve value may drop
Valuation gains are not cash liquidity

Therefore, stability depends on global market trends.

Pakistan’s Gold Reserves in Historical Context

Over the years, Pakistan’s gold holdings have remained relatively stable in quantity.

However, value fluctuates due to:

International gold prices
Exchange rate movements
Global economic conditions

The current $10.374 billion valuation is one of the highest in recent years.

Conclusion – A Strong Boost to Pakistan’s Financial Position

Pakistan’s gold reserves rising by $3.5 billion in just seven months of FY26 marks a major financial development. With reserves now valued at $10.374 billion, the country’s external position looks stronger.

While this increase is largely driven by global gold price appreciation rather than new purchases, it still improves Pakistan’s financial stability and investor confidence.

If gold prices remain elevated, Pakistan’s reserve strength could continue to improve in 2026. However, sustainability depends on international market trends and broader economic reforms.