Karachi, November 17, 2024 – Pakistan’s gold imports witnessed a sharp 20% year-on-year increase during the first four months of the fiscal year 2024-25, reaching $10.64 million compared to $8.88 million in the corresponding period last year. This data, released by the Pakistan Bureau of Statistics (PBS), underscores heightened demand and escalating international gold prices.
The volume of gold imported during this period rose to 148 kilograms, reflecting a modest increase of 6.94% from 138 kilograms in the same period last fiscal year. However, the disproportionate rise in the import value suggests that surging global gold prices were the primary driver behind the spike in import costs.
Market analysts attribute the escalation in gold imports to growing geopolitical uncertainties, particularly those linked to the ongoing conflict in the Middle East. This turmoil has driven gold prices upward globally as investors turn to the precious metal as a safe-haven asset.
Domestically, gold prices in Pakistan mirrored international volatility, reaching an unprecedented high of Rs. 287,900 per tola on October 30, 2024. However, following the U.S. presidential election victory of Donald Trump and subsequent optimism for an early resolution to the Middle East crisis, gold prices have started stabilizing.
Pakistan remains a net importer of gold, primarily to cater to domestic demand for jewelry manufacturing and for export purposes. The fluctuation in gold prices has had significant implications for the local market, influencing both consumer purchasing patterns and the profitability of jewelry exports.
Experts anticipate that while global prices may ease in the coming months, domestic demand could remain robust, sustained by cultural traditions and rising interest in gold as a hedge against economic uncertainty.
The 20% surge in gold imports during the current fiscal year underscores the challenges and opportunities for Pakistan’s economy in navigating volatile global markets. Policymakers and industry stakeholders will need to closely monitor these trends to mitigate any adverse impacts on the trade deficit while capitalizing on export opportunities.
As gold prices inch towards stability, the coming months will reveal whether this upward trajectory in imports persists or gives way to a more balanced demand-supply dynamic.
