ISLAMABAD: The Competition Commission of Pakistan (CCP) has recommended the creation of an autonomous Pakistan Gold and Gemstone Authority to regulate the country’s gold market, citing the sector’s massive undocumented activity and the absence of a unified oversight framework.
The recommendation is part of the CCP’s first-ever Competition Assessment Study of Pakistan’s Gold Market, released by its Centre of Excellence in Competition Law (CECL), which provides a detailed analysis of the market’s structure, regulatory gaps, and barriers to fair competition.
According to the study, Pakistan consumes between 60 and 90 tonnes of gold every year, making it one of the largest gold markets in South Asia.
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Despite this scale, more than 90 percent of all gold trading takes place outside formal channels, relying heavily on cash-based transactions and undocumented supply chains.
The report notes that Pakistan imported gold worth USD 31 million in 2023, while official reserves stood at 64.75 tonnes in early 2025. It adds that the market is poised for major change with the operationalization of the RekoDiq copper-gold project, which is expected to generate up to USD 74 billion over its 37-year life span. However, the study warns that without structural reforms, Pakistan will be unable to integrate domestically mined gold into the formal sector.
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The CCP identifies several factors that distort competition in the gold market, including non-transparent price setting, limited refining capacity, and a fragmented regulatory landscape. Daily gold prices, the report states, are determined largely by local associations instead of transparent market mechanisms, leaving room for manipulation and artificial premiums.
The regulatory environment is split among multiple institutions, including the Ministry of Commerce, FBR, SBP, PGJDC and TDAP, and their overlapping mandates often lead to inconsistent enforcement.
The repeated suspension of SRO 760(I)/2013, which governs the import and export of gold jewellery, is highlighted as an example of regulatory instability. High taxation, cumbersome documentation, and weak AML enforcement further drive traders toward informal channels.
The study proposes a comprehensive reform package, starting with the establishment of a single regulatory authority to harmonize licensing, compliance, hallmarking, and import rules. It calls for mandatory assaying and hallmarking across the country to curb adulteration and restore consumer confidence.
The CCP also recommends a digital transformation of the gold value chain, including block chain-based traceability linked with FBR’s Track and Trace system, to curb smuggling and improve transparency.
Copyright Business Recorder, 2025
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