Karachi, June 13, 2024 – Gold prices in Pakistan experienced a significant drop on Thursday, declining by Rs 1,200 per tola following the announcement of new restrictive measures in the 2024-25 budget.
This sharp decrease has brought the price of 24-karat gold per tola down to Rs 204,700 from the previous day’s closing of Rs 241,900 in local markets.
Similarly, the price of 24-karat gold per 10 grams fell by Rs 1,029, reaching Rs 206,361 from the previous day’s closing of Rs 207,390 in domestic markets. The decline in gold prices has caught the attention of investors and consumers alike, prompting discussions about the impact of the new budgetary measures on the gold market.
Bullion market experts have attributed the drop in domestic gold prices to the newly announced budgetary measures. The government, in its 2024-25 budget, introduced heavy taxes on individuals operating outside the documented economy. These measures are seen as an attempt to increase revenue and bring more economic activity into the formal sector. However, they have also led to immediate reactions in various markets, including the gold market.
“The imposition of heavy taxes on the undocumented sector has created uncertainty among investors, leading to a sell-off in gold,” said a bullion market analyst. “This is a clear response to the government’s attempt to tighten regulations and increase tax revenue.”
Despite the decline in domestic gold prices, the international market saw a slight increase. The gold prices in the international market rose by $2, ending at $2,315 per ounce, compared to the previous day’s closing of $2,313. This divergence highlights the unique factors influencing gold prices locally in Pakistan versus globally.
Market watchers are keeping a close eye on the developments and potential adjustments in investor behavior in response to the new budget. The government’s measures aim to curb tax evasion and increase compliance, but the immediate impact on gold prices indicates a complex interplay between policy changes and market reactions.
As the budgetary measures begin to take effect, the gold market in Pakistan is likely to remain volatile, with further fluctuations possible as both investors and consumers adjust to the new economic landscape.
