Import, export of gold prohibited under foreign exchange laws

KARACHI: The import and export of gold are prohibited, except with the general permission, under updated foreign exchange manual issued by State Bank of Pakistan (SBP).

Under the Foreign Exchange Manual 2019

(i) The Federal Government by their Notification No.1(2) ECS/48 dated the 1st July, 1948 issued pursuant to sub-section (1) of Section 8 of the Act have prohibited, except with the general or special permission of the State Bank, the import into Pakistan from any place outside Pakistan of:

(a) any gold coin, gold bullion, gold sheets or gold ingot whether refined or not, and

(b) any silver bullion, any silver sheets or plates which have undergone no process of manufacture subsequent to rolling or any uncurrent silver coin.

Import of gold and silver into Pakistan is, therefore, subject to State Bank’s authorization.

(ii) Import of pure gold/silver and rough/uncut precious and semiprecious stones will be allowed against export of gold/silver jewellery and cut and polished precious/semi-precious stones in accordance with the procedure notified by the Government of Pakistan and the instructions issued by the State Bank from time to time.

(iii) The State Bank vide its Notification No. F.E.1/94-SB dated the 20th March, 1994 has granted general permission for import of gold into Pakistan from any place outside Pakistan as accompanied baggage provided such imports are made in accordance with the existing import policy.

Sub-section (2) of Section 8 of the Act prohibits the export of gold except with the general or special permission of the State Bank. The State Bank, however, does not allow the export of gold.

Under the Act, there are no restrictions on the export of silver. Its export when allowed requires to be declared on form ‘E’ prescribed for export by the State Bank and the export proceeds are required to be repatriated within the stipulated period.

In terms of State Bank’s Notification No.FE.4/91-SB dated the 26th February, 1991, all persons are required to declare to the Custom authorities at the time of leaving Pakistan, jewellery and precious stones carried by them in prescribed declaration Form ‘CD’.

In order to ensure that the outgoing passengers do not face any difficulty in obtaining ‘CD’ forms and filling them at the time of their departure, airlines/shipping companies, travel agents are required to supply these forms to the intending passengers at the time of issuing the tickets so that the completed forms are with them before they enter the Custom Lounge.

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