Pakistan strikes gold: New reserves discovered

Pakistan has discovered $2.87bn (800 billion Pakistani Rupees) worth of gold reserves in Attock.

According to a report in the Economic Times, the precious metal has been found spread across a 32-kilometre long stretch in the city of Punjab.

The announcement was made by Ibrahim Hasan Murad, the former Mining Minister of Punjab on X.

“This milestone marks a significant step towards unlocking Pakistan’s mineral wealth, setting the stage for economic revitalisation and new opportunities for future generations”, his statement said.

Attock’s Gold: A 800 Billion PKR Treasure Revealed

Former Mining Minister of Punjab, Ibrahim Hasan Murad, has unveiled a groundbreaking discovery: 2.8 million tolas of gold, valued at 800 billion PKR, spread across a 32-kilometer stretch in Attock. This revelation, validated by… pic.twitter.com/kmyv9QnvGx

— Ibrahim Hasan Murad (@ibrahimhmurad) January 10, 2025

Gold discovery

The discovery of 2.8 million tolas of gold (32.66 metric tonnes), was validated by the Geological Survey of Pakistan, after conducting a thorough sampling from 127 sites.

The UAE has also agreed to roll over the payment of $2bn due by Pakistan this month, the nation’s Prime Minister Shehbaz Sharif said on January 7, 2025.

Sharif said he met with UAE President Sheikh Mohammed bin Zayed Al Nahyan while he was on a personal visit to Pakistan.

“In a one-on-one meeting he said…there is a $2bn dollar repayment due and we are extending this,” Sharif told reporters in a televised press conference.

Pakistan’s economy

Pakistan’s $350bn economy has struggled for decades with boom-and-bust cycles, needing 23 IMF bailouts since 1958.

READ MORE: IMF approves $1.1bn funding tranche to help Pakistan’s economy

Gold prices eased on January 13, as strong US jobs data reinforced the Federal Reserve’s cautious stance on interest rate cuts and boosted the dollar, though underlying safe-haven demand amid uncertainty around President-elect Donald Trump’s policies curbed losses.

Trump will take office on January 20 and some economists say his proposed tariffs could potentially ignite trade wars and inflation. In such a scenario, gold, considered a hedge against inflation and economic uncertainty, is likely to perform well.

(With inputs from Reuters reports)