Pakistan Set to Bring Gold and Jewelry into Formal Economy

Pakistan Set to Bring Gold and Jewelry into Formal Economy – In a significant move towards economic documentation, Pakistan has decided to integrate its gold and jewelry sector into the formal economy.

Prime Minister Shehbaz Sharif has established a high-powered committee to devise a comprehensive scheme within one week to achieve this goal.

Sources within the finance ministry have confirmed that this scheme is expected to be introduced in the upcoming 2024-25 budget. The Prime Minister has charged this committee with the crucial task of formalizing the gold and jewelry business in Pakistan.

The committee, led by the Minister of Finance, includes key figures such as the Minister for Commerce, the Minister for Industries, the Chairman of the Federal Board of Revenue (FBR), and the Governor of the State Bank of Pakistan (SBP). Together, they will develop a scheme aimed at bringing gold and jewelry businesses into the formal sector.

The proposed scheme is expected to include provisions for legal imports of gold and jewelry, conditional upon mandatory exports. This measure aims to ensure that the gold and jewelry trade is conducted through legal channels, thereby enhancing transparency and accountability.

Formalizing the gold and jewelry sector is anticipated to have multiple benefits. It will not only help in documenting the economy but also potentially increase tax revenues and reduce smuggling and illegal trade. By ensuring that transactions in this sector are recorded and regulated, the government hopes to foster a more robust and transparent economic environment.

Bringing the gold and jewelry trade into the formal economy is also expected to support the local industry by providing better access to legitimate financial resources and international markets. This move could enhance the competitiveness of Pakistani gold and jewelry in the global market, encouraging growth and investment in the sector.

As the deadline for the development of the scheme approaches, stakeholders within the gold and jewelry industry will be keenly watching the committee’s progress. The successful implementation of this initiative could mark a transformative step for Pakistan’s economy, promoting greater economic stability and growth.

The formalization of the gold and jewelry sector aligns with the broader economic goals of the current administration, reflecting a commitment to improving regulatory frameworks and enhancing the overall business environment in Pakistan.