SBP Reports $19 Million Rise in Foreign Reserves as Gold Prices Surge
The State Bank of Pakistan announced a $19 million increase in its foreign exchange reserves, while gold prices jumped by Rs 11,200 per 10 grams, reflecting mixed signals for the economy and market sentiment.
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Desk Analysis
How This Affects the Exchange
Sector Effect
Positive · Buy bias
Reserve increase supports Economy and Markets, creating a Buy bias for related sectors.
Sectors & Direction
Desk read
Desk call: Buy bias · Positively affected
- EconomyPositively affected
- MarketsPositively affected
- BanksPositively affected
Companies
Mentions in This Briefing
Sectors: Economy, Markets, Banks — Positive · Buy bias. PSX tickers: MEBL, MCB, UBL, HBL, BAHL, FABL. Reserve increase supports Economy and Markets, creating a Buy bias for related sectors.
Full Story
Open on Express Tribune## State Bank of Pakistan Reserve Update
The State Bank of Pakistan (SBP) released its latest foreign exchange reserve figures, showing a modest increase of $19 million, bringing total reserves to approximately $5.43 billion. This uptick follows a prior decline of $78.8 million, which had reduced the reserves to $5.41 billion during the same reporting period.
## Gold Market Reaction
In parallel, the domestic gold market experienced a sharp rise, with the price of 10 grams of gold climbing by Rs 11,200. Analysts attribute the surge to heightened global uncertainty and a weaker US dollar, prompting investors to seek safe‑haven assets.
## Implications for the Economy and Markets
The slight improvement in foreign reserves provides a modest cushion for the Pakistani rupee, supporting the SBP’s ongoing efforts to stabilise the currency amid external pressures. However, the sharp increase in gold prices signals continued risk aversion among investors, which could translate into reduced appetite for riskier equity assets.
## Outlook
Market participants will monitor subsequent reserve data and gold price movements closely. A sustained rise in reserves could bolster confidence in the banking sector and broader market, while persistent gold price volatility may keep risk‑off sentiment alive.