LAHORE:
Pakistan’s largely casual gold market is eroding financial worth, weakening client confidence and discouraging funding, with greater than 90% of buying and selling going down outdoors formal channels, the Pakistan Enterprise Discussion board (PBF) has warned.
Based on a press release issued on Friday, the Discussion board mentioned Pakistan consumes an estimated 60 to 90 tonnes of gold yearly, but most transactions stay undocumented. This widespread informality, it mentioned, distorts costs, encourages smuggling and under-invoicing, and ends in important income losses. The nation can also be closely import-dependent, with gold imports valued at about $17 million in FY2023-24.
The Discussion board mentioned the sharp rise in home gold costs throughout 2025 had additional uncovered weaknesses in market governance. Market information exhibits the value of pure gold per tola elevated from round Rs272,600 on the finish of 2024 to about Rs456,962 by the top of 2025, a soar of almost Rs184,362 inside a yr.
The assertion mentioned that casual, cash-based buying and selling continues to permit unregulated networks to affect provide and pricing. It added that fragmented coverage oversight, excessive and inconsistent taxation, complicated compliance procedures, restricted refining, assaying and hallmarking capability, and the dearth of dependable information on dealer registration, gross sales volumes and high quality requirements have discouraged formalisation and weakened client safety.
The Discussion board additionally highlighted upcoming mining initiatives, notably the Reko Diq copper-gold challenge, as a significant alternative to reshape Pakistan’s gold ecosystem. With an estimated financial potential of as much as $74 billion, the challenge may strengthen home provide chains and worth addition if supported by a clear and aggressive downstream market.
