Pakistan should think seriously about shifting some of its foreign reserves from dollars to gold as the war between the US and Iran keeps dragging on. A commodities broker based in Dubai shared his straight advice. He believes the State Bank of Pakistan must act fast and build up its gold holdings. According to him, a long conflict in the Gulf could shake confidence in the US dollar and even push the American economy toward serious trouble.
The broker pointed out that Washington has already spent heavily on sending more troops and equipment to bases in Saudi Arabia, Bahrain, and Jordan. If President Trump keeps pouring money into this war, the extra spending and money printing might weaken the dollar over time — or, in his words, simply kill it.
Pakistan already holds a decent amount of gold. As of February 2026, the State Bank had gold reserves worth more than $10.3 billion. That comes to about 64.76 tons, or roughly 5.55 million tolas. Since the start of the current financial year, the bank added nearly $3.5 billion in gold. Still, most experts say the country needs even more to stay safe if global markets turn shaky.
Central banks around the world have been buying gold like never before. They picked up over 1,000 tons every year for the last three years straight. Many countries now see gold as the best protection against sudden economic shocks and unstable currencies.
Under Pakistani law, the State Bank can easily buy and sell gold. The rules allow it without breaking any IMF conditions, although dollars remain important for quick payments and daily trade needs.
Some voices on social media even suggested Pakistan should move up to 80 percent of its reserves into gold to cut reliance on the dollar. Others warned that such a big shift could create problems with liquidity and international obligations. The right balance matters.
For now, the rising tensions make one thing clear: Pakistan cannot ignore the risks. Smart reserve management today could shield the economy tomorrow if the US dollar faces real pressure from this costly war.
