Pakistan’s forex reserves reach five-year high at $26.8bn

Pakistan’s forex reserves reach five-year high at $26.8bn

Pakistan’s total liquid foreign exchange reserves climbed to $26.8 billion as of September 11, 2026, marking their highest combined level since September 10, 2021. The State Bank of Pakistan (SBP) held $21.4 billion of the total, setting a new record for the central bank, while commercial banks held $5.4 billion.

According to Arif Habib Limited (AHL), the country’s reserves have increased its import cover to 3.03 months, crossing the three-month benchmark for the first time since August 2020. The calculation relies on a three-month average of imports.

The SBP’s reserves surged by $3.061 billion during the week ending September 11, marking the largest weekly increase since June 27, 2025. The central bank attributed the rise to Pakistan’s receipt of Eurobond proceeds.

Although the overall reserves remain slightly below the $27.1 billion recorded in September 2021, the SBP’s holdings have reached an all-time high. The latest figures indicate a stronger external liquidity position compared with much of the past five years.

Meanwhile, gold prices in Pakistan declined on Thursday following a sharp increase a day earlier, despite a strong recovery in international gold prices.

The All-Pakistan Gems and Jewellers Sarafa Association reported that the price of 24-karat gold fell by Rs3,800 to Rs453,436 per tola. The price of 10 grams dropped by Rs3,257 to Rs388,749. Silver prices also declined by Rs73, reaching Rs6,869 per tola.

In the international market, gold prices moved higher. Spot gold rose 2.3% to $4,360.36 per ounce at 1:45 pm EDT, while December US gold futures settled 0.3% higher at $4,399.70.

The recovery followed a sharp sell-off after the Federal Reserve raised its target interest rate range to 3.75%-4.00% on Wednesday. A weaker US dollar, declining 10-year Treasury yields and lower oil prices helped support gold prices by reducing inflation concerns and the opportunity cost of holding the precious metal.

Crude oil prices fell to a one-week low, further supporting the metal’s rebound.

Adnan Agar, Director at Interactive Commodities, said international gold prices fluctuated between $4,251 and $4,381 on Thursday, with the market trading near $4,360.