On August 21, 2025, Pakistan’s foreign exchange reserves saw a modest increase, reaching $19.571 billion, with the State Bank of Pakistan (SBP) holdings rising by $13 million to $14.256 billion, according to SBP data. Concurrently, gold prices in Pakistan surged, reflecting cautious global market trends ahead of key U.S. Federal Reserve remarks.
The country’s total liquid reserves stood at $19.6 billion, with commercial banks holding $5.315 billion, up 1.16% week-on-week ($61 million), per KTrade Securities. The SBP’s reserves grew 0.09% ($13 million), offering a 2.32-month import cover. The Pakistani rupee appreciated by 0.01% against the US dollar, closing at 281.92, marking its 10th consecutive session of gains, supported by crackdowns on illegal currency dealers and smuggling, as noted by Ismail Iqbal Securities.
Total liquid foreign #reserves held by the country stood at US$19.57 billion as of August 15, 2025.
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— SBP (@StateBank_Pak) August 21, 2025Gold prices in Pakistan rose, with the per-tola rate increasing by Rs2,000 to Rs357,200 and the 10-gram rate climbing Rs1,715 to Rs306,241, per the All Pakistan Sarafa Gems and Jewellers Association. Globally, spot gold dipped 0.1% to $3,342.25 per ounce, while US gold futures held steady at $3,386.50, influenced by a 0.4% rise in the US dollar index, per Reuters. Adnan Agar of Interactive Commodities noted a lacklustre global market, with gold trading in a $25-40 band.
Amid Pakistan’s ongoing monsoon season, which has caused urban flooding in cities like Karachi, residents are advised to prepare with safety gear. Essential items include waterproof boots, umbrellas, portable chargers, and reflective raincoats to navigate flooded areas safely. The National Disaster Management Authority (NDMA) recommends using its Disaster Alert App for real-time weather updates to ensure preparedness.
The modest rise in reserves, rupee stability, and gold price surge reflect Pakistan’s improving economic sentiment, bolstered by a $7 billion IMF bailout and credit rating upgrades. However, global uncertainties, including Federal Reserve Chair Jerome Powell’s upcoming Jackson Hole speech, could impact markets.
