Buying & Selling

The gold and silver markets recently underwent a historic correction, headlined by gold’s sharpest one-day decline since 1983 and a staggering 27% plunge in silver prices. This "perfect storm" was ignited by Donald Trump’s nomination of Kevin Warsh as the next Federal Reserve Chair, which signaled a shift toward a stronger US dollar and more disciplined inflation control, undermining the appeal of metals as a safe-haven hedge. The sell-off was further accelerated by the CME Group raising margin requirements—the cash needed to maintain trading positions forcing heavily leveraged investors to liquidate their holdings in a massive wave of forced selling. While the drop erased billions in market value, many experts view the crash as a necessary "healthy reset" that has purged speculative excess and brought prices back to more sustainable levels.

The Australian dollar hit a three-year high of $0.7050 on Thursday, driven by surging gold prices and bets on an RBA rate hike next week, while the NZ dollar reached a seven-month peak at $0.6070. Both eased slightly in Asian trade amid mixed US tech earnings. The US dollar stabilized after Fed comments and policy affirmations, but Antipodean currencies outperformed.

Pakistan’s IT industry is experiencing a massive breakout, hitting a record-breaking $437 million in monthly exports in December 2025. This surge is driven by strategic government policies most notably the State Bank of Pakistan increasing foreign currency retention limits to 50% which allows firms and freelancers to reinvest their dollar earnings globally with ease. While industry giants like Systems Limited are spearheading international expansion, a thriving freelance community is expected to contribute nearly $1 billion this year alone. To achieve the government's ambitious $10 billion target by 2029, the sector must now pivot toward high-value technologies like AI and smart systems while tapping into under-explored markets in Europe and the Asia-Pacific.

Pakistan plans a 2026 return to global bond markets with its first panda bond, Eurobonds, or sukuks after four years away. Finance Minister Aurangzeb, speaking at Davos, cited stabilized inflation, rates, fiscal health, and IMF-backed reforms like PIA privatization.

Pakistan's State Bank of Pakistan (SBP) reserves rose by $13 million to $15.915 billion as of December 26, 2025, contributing to total liquid reserves of $21.012 billion despite a slight drop in commercial banks' holdings. This provides about 3.2 months of import cover amid ongoing debt pressures. The improvement marks a strong recovery from 2023 lows below $3 billion, aided by IMF support and bilateral aid, while domestic gold prices fell Rs2,400 per tola to Rs454,562.

Pakistan’s trade deficit widened by 34.6% in the first half of FY26, reaching $19.2 billion. According to the Pakistan Bureau of Statistics, exports fell 8.7% to $15.18 billion, while imports rose 11.28% to $34.38 billion. In December alone, exports dropped 20% year-on-year, while imports increased 2%, underscoring ongoing strain on the country’s trade balance.

U.S. companies are increasingly turning to Pakistan as a potential supplier of antimony, a critical mineral used in defence and technology industries, according to the Financial Times. Rising concerns over China’s control of global mineral supply chains have led American firms to explore partnerships in Pakistan. Deals involving Himalayan Earth Exploration, Nova Minerals, and the Frontier Works Organisation signal growing U.S. investment interest in the sector. Although Pakistan holds a small share of global antimony reserves, experts see the trend as an opportunity to expand local mining capabilities and strengthen U.S.–Pakistan economic ties.

PIA’s privatisation moves ahead on December 23, with three bidders still competing after Fauji Fertiliser’s withdrawal. The bidders will submit and open bids the same day under a live-televised process, seeking a 75pc stake, while 25pc shares remain with the government. The winning bidder will pay in two tranches and assume key liabilities, with no layoffs allowed for one year and staff benefits protected.

Pakistan has signed an MoU with Binance to explore tokenising up to $2 billion worth of sovereign bonds, treasury bills and commodity-backed assets to improve liquidity and access to global investors. Pakistan’s new virtual-assets regulator has also granted initial clearances for Binance and HTX to set up local entities and begin the licensing process, as part of a wider digital-finance reform drive that includes a cr