ISLAMABAD: Minister for Commerce, Jam Kamal Khan, on Friday assured the All Pakistan Small Gems Jewellers & Tools Association (APSGJTA) that SRO 760 will be reinstated soon, expressing satisfaction with the arguments presented by industry representatives and exporters.
The Ministry of Commerce also held a Zoom meeting with gold exporters, who urged the minister to prioritise the reinstatement of the SRO. Exporters highlighted that their import and re-export consignments have been delayed, with a 50-kg gold consignment currently stuck at the port. The SRO expired on July 8, 2025.
“Buyers of Pakistani exporters are considering legal action against their local partners for failing to meet commitments,” said Shabir Ahmad Awan, Convener of APSGJTA’s Export Standing Committee, while speaking to Business Recorder.
Both the Commerce minister and secretary Commerce assured exporters that the suspended SRO would be reinstated as soon as possible. However, exporters remain concerned that the matter could once again stall at the Prime Minister’s Office (PMO) — as in the past.
Earlier, the additional secretary of Commerce had informed the National Assembly Standing Committee on Commerce that a special committee had cleared the matter. However, the PMO returned the proposal for reconsideration.
Speaking to Business Recorder, Jawed Hanif Khan, Chairman of the NA Standing Committee on Commerce, said he has convened a meeting on August 18, 2025, to raise the issue once again.
“Officials from the Commerce Ministry gave their word that the matter has been resolved,” he said.
The gold jewellery export sector operates under SRO 760(I)/2013, which offers tax exemptions under Clause 6: “Import duty and taxes on the import of precious metals and gemstones under this order shall be exempt from normal import tariffs and taxes. Import of other raw materials, tools, machinery, and equipment required for the production and export of items shall also be exempt from normal import tariffs and taxes.”
However, contrary to this provision, sales tax exemptions are not available across all schemes related to the import of precious metals and associated items. While Customs Duty, Additional Customs Duty, and Withholding Tax are exempt under relevant laws, the Sales Tax Act only provides exemption for gold imported under the Entrustment Scheme (S No 178, Sixth Schedule). Imports under the Self-Consignment Scheme, and other related items, remain subject to the standard 18 percent sales tax.
Copyright Business Recorder, 2025
Comments
Comments are closed for this article.