State Bank’s gold holdings gain Rs389bn in value as international bullion prices rise sharply during FY26.
KARACHI: The value of gold held by the State Bank of Pakistan (SBP) increased by 20% to Rs2.334 trillion during fiscal year 2025-26 (FY26), compared with Rs1.942 trillion in the previous financial year, according to the central bank.
The SBP recognised an appreciation of Rs389.074 billion during the year, compared with Rs591.222 billion in FY25. The valuation was based on a closing market rate of $4,026.05 per troy ounce of fine gold, up from $3,287.45 per ounce a year earlier.
The increase in the value of the central bank’s gold reserves primarily reflected the rise in international gold prices, which boosted the rupee value of its holdings.
How the SBP values gold reserves
According to the SBP, gold is initially recorded at cost based on the prevailing market rate at the time of recognition.
Following initial measurement, gold reserves are revalued at the closing market rate of fine gold content fixed by the London Bullion Market Association (LBMA) on the last working day of the financial year.
The revaluation is also required under Section 30(2) of the State Bank of Pakistan Act, 1956.
Any appreciation or decline arising from the revaluation is recognised under other comprehensive income and transferred to equity under the head ‘unrealised appreciation on gold reserves’.
Meanwhile, any appreciation or diminution realised when gold is disposed of is recognised in the SBP’s unconsolidated profit and loss account.
Gold held with Reserve Bank of India
The SBP has also clarified its accounting treatment for gold reserves held with the Reserve Bank of India (RBI).
Unrealised appreciation or diminution on such gold is not recognised in the unconsolidated statement of changes in equity pending the transfer of these assets to the SBP.
The transfer remains subject to a final settlement between the governments of Pakistan and India.
Until the settlement is reached, the unrealised amount is reported under other liabilities as a provision for other doubtful assets.
The latest figures highlight the significant impact of international gold prices on the value of Pakistan’s official gold reserves and the SBP’s reported financial position.