Gold import suspension raises alarm over potential price hikes

Pakistan's gold import market has reached a standstill, with no imports recorded between March and July 2024, reported 24NewsHD TV channel on Friday.  

This significant development follows an earlier average monthly import rate of 40 to 50 kilograms.

The sudden suspension has raised alarms among stakeholders, particularly in the jewelry industry, as the scarcity of gold could potentially lead to increased domestic prices.

The official documents revealed that Pakistan imported 262 kilograms of gold worth $20 million during the fiscal year 2023-24.

This figure marks a significant 44.43% decline compared to the previous fiscal year 2022-23 when the country imported 567 kilograms of gold valued at $30.6 million.

Reports said importers have been barred from importing gold for five months due to undisclosed reasons.

However, the halt in gold imports could drive up the gold prices in the country.

Jewelers argue that allowing gold imports is crucial for price stabilization in the country, adding that a shortage of yellow metal was reported in various cities.

With the domestic demand for gold remaining high, the prolonged suspension could have far-reaching economic implications.