Gold prices surge in Pakistan as international market rallies

Karachi: The price of gold in Pakistan witnessed a significant surge on Saturday, mirroring the upward trend in the international market.

All Sindh Sarafa Jewellers Association confirmed increase in the prices of yellow metal. They said the price of 24-karat gold per tola rose by Rs2700 and reached Rs235,300 on Saturday, compared to its previous rate of Rs232,600.

Similarly, the price of 10 grams of 24-karat gold increased by Rs2,315 to Rs201,732 from Rs199,417, while the price of 10 grams of 22-karat gold climbed to Rs184,920 from Rs182,800.

The international market saw a $13 rise in gold price, reaching $1977 compared to its previous rate of $1964, according to the association. In contrast, the prices of per tola and ten-gram silver remained unchanged, closing at Rs2850 and Rs2443.41, respectively.

Pakistan's economy is currently facing challenges due to financial difficulties and the delay in reaching an agreement with the International Monetary Fund (IMF), which is crucial to secure necessary funding and avoid the risk of default.

The reports suggest that the IMF is still skeptical and demanding additional measures from Islamabad to unlock the loan program, despite assurances from friendly countries regarding external funds for Pakistan.

The sources reveal that Pakistan had been asked to present a repayment plan for a $3.7 billion loan to the IMF in June and to demonstrate stronger support from friendly nations to fulfill its commitment.

However, the proposal to exchange reserves equivalent to two months' revenue, estimated between $11 to $12 billion, has not been approved by the IMF.

It had come to light that the government had imposed Rs. 170 billion in taxes through a mini-budget to facilitate a staff-level agreement with the IMF, originally scheduled for February 9, as per sources in the Ministry of Finance.