Gold prices in Pakistan continued their sharp upward march on Tuesday, touching an all-time high as global demand for the precious metal intensified.
According to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold jumped by Rs4,100 per tola, reaching Rs388,100. Rates for 10 grams also rose by Rs3,514, settling at Rs332,733.
This comes just a day after gold saw a hefty Rs6,100 gain, taking the per tola price to Rs384,000.
Global Rally Fuels Local Prices
The surge in Pakistan mirrors international trends. In global markets, spot gold hovered around $3,661 an ounce, after earlier hitting a record high at the same level. US gold futures for December delivery edged even higher, climbing to $3,701 per ounce.
The rally is largely tied to expectations of a possible US interest rate cut in September, along with falling Treasury yields. A weaker dollar has further supported gold, as investors shift towards safe-haven assets amid global uncertainty.
Rupee Stretches Its Winning Streak
The Pakistani rupee also inched up, albeit modestly, closing at 281.61 against the dollar, a gain of just one paisa in the interbank market. Even with the small move, this marks the 23rd consecutive session of appreciation.
So far this year, the rupee has lost 1.09% in value but has strengthened 0.76% since the start of the current fiscal year.
Debt Concerns Cast a Shadow
Behind the buoyant gold and currency market, Pakistan’s debt situation remains troubling. Government data show that by the end of June 2025, total debt had risen to Rs77.9 trillion, up 2.4% from May and 13% higher year-on-year.
Most of this burden comes from domestic borrowing, with Rs54.5 trillion owed locally. Long-term federal government bonds alone account for Rs41.4 trillion. External debt now stands at Rs23.4 trillion.
Analysts caution that this heavy reliance on domestic bonds and rising external obligations leaves Pakistan with limited fiscal breathing room. With revenues under strain, managing the growing debt stock remains one of the country’s most pressing economic challenges.
