A new report by the Competition Commission of Pakistan (CCP) shows that Pakistanis buy 60 to 90 tons of gold every year, worth $8–12 billion. Despite this huge demand, over 90% of the gold trade is still undocumented.
According to CCP, nearly 70% of gold purchases are linked to weddings, while Pakistan relies heavily on imports. The country imported $17 million worth of gold in FY24, and official gold reserves stand at 64.76 tons, valued at around $9 billion.
CCP warned that Pakistan’s gold market remains mostly informal because of weak regulation, no proper hallmarking, and high compliance costs. The suspension of SRO 760 has also slowed down jewellery exports.
The report also highlighted the potential of the Reko Diq project, which could produce 17.9 million ounces of gold over 37 years — worth $54 billion at current prices. Without reforms, this gold could also enter the undocumented market.
To fix the system, CCP recommended:
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A single gold regulatory authority
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Mandatory hallmarking across the country
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Digital tracking for gold through blockchain
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A gold banking system to document household gold
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Better taxation and market data
CCP added that gold trading today is dominated by big cities like Karachi and Lahore, and prices are set by associations instead of transparent market forces.
Source: Propakistani
