Karachi, June 15, 2024 – Gold prices in Pakistan witnessed a decline of Rs 200 per tola on Saturday, amid growing anticipation of a government crackdown aimed at mandating documentation for all gold transactions.
The price of 24-karat gold fell to Rs 241,300 per tola, down from Rs 241,500 recorded at the previous day’s close. The price of 10 grams of 24-karat gold followed suit, dropping by Rs 171 to settle at Rs 206,876, compared to Rs 207,047 the prior day.
Analysts attributed this price decline to domestic anxieties surrounding the impending documentation push, despite a simultaneous rise in international gold markets. Prime Minister Shehbaz Sharif recently formed a high-powered committee tasked with developing a comprehensive documentation scheme for gold transactions within a week.
Sources within the finance ministry have confirmed the expected implementation of this program next month. The committee, led by the Finance Minister, comprises key figures including the Commerce Minister, Industry Minister, Federal Board of Revenue (FBR) Chairman, and State Bank of Pakistan (SBP) Governor. Their collaborative effort aims to formalize the country’s gold and jewelry trade.
The proposed scheme is expected to outline procedures for legal gold and jewelry imports, contingent upon mandatory exports. This approach intends to ensure all trade within the sector adheres to legal channels, bolstering transparency and accountability.
Formalizing the gold and jewelry market carries numerous potential benefits. It not only streamlines documentation within the national economy but also holds the promise of increased tax revenue and a decrease in smuggling and illegal trade activities. By establishing a system of recorded and regulated transactions, the government hopes to cultivate a more robust and transparent economic environment.
While the global gold market witnessed a rise of $9 per ounce, closing at $2,332 compared to $2,323 the day before, the domestic market in Pakistan displayed a contrasting trend, reflecting anxieties surrounding the upcoming documentation drive.
