ISLAMABAD: The Ministry of Commerce has proposed replacing percentage-based value addition requirements for jewellery exports with fixed dollar rates per gram under SRO 760(I)/2013, in a move aimed at addressing concerns of exporters over the rising burden of value addition linked to international gold prices.
Under the proposed revised framework, value addition would be fixed at $1.50 per gram for bangles and chains, $2 per gram for other plain jewellery and $4 per gram for studded or embedded jewellery, replacing the existing requirements of 8 percent, 12 percent and 13 percent, respectively.
According to official documents to be submitted to the Economic Coordination Committee (ECC) of the Cabinet for consideration and approval, following deliberations were held among relevant government departments, industry stakeholders and parliamentary representatives.
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According to a summary submitted by the Ministry of Commerce, import and export of precious metals and jewellery are regulated under SRO 760(I)/2013 dated September 2, 2013, which provides for Entrustment and Self-Consignment Schemes to facilitate export-oriented jewellery manufacturing.
The existing regulatory framework prescribes minimum value addition requirements for different categories of jewellery, which exporters have argued have become increasingly difficult to meet due to fluctuations in international gold prices and dollar-rupee parity.
The ministry stated that linking value addition to a percentage of international gold value had become misaligned with regional and international practices and had disproportionately increased the value addition burden on exporters.
The issue was also taken up by the National Assembly Standing Committee on Commerce following representations from private-sector stakeholders.
Earlier, the Ministry of Commerce had submitted a summary to the Federal Cabinet on April 30, 2025, highlighting concerns regarding volatility in dollar-rupee parity, foreign exchange implications, limited value addition under the existing schemes and dispersed data maintained by different agencies.
The government had subsequently approved suspension of SRO 760(I)/2013 for 60 days and constituted a committee under the chairmanship of the Secretary, Ministry of Commerce, to review the regulatory framework, identify loopholes and recommend a foolproof mechanism.
After holding several meetings and examining the relevant data, the committee found no discrepancy in the data and recommended restoration of the SRO, along with automation of procedures through integration with the Pakistan Single Window (PSW) and amendments to streamline the regulatory framework.
The committee’s recommendations were subsequently endorsed by the Prime Minister’s Office, and the matter was referred to the ECC of the Cabinet, which approved the recommendations in its meeting following submission of a summary dated October 16, 2025.
However, the issue of value addition norms remained under consideration following intervention by the National Assembly Standing Committee on Commerce.
The parliamentary committee, in its meeting held on February 4, 2026, directed the Ministry of Commerce to convene a joint meeting of all stakeholders and examine the value addition mechanism under SRO 760(I)/2013 in a regional context, including comparison with competing countries.
During subsequent consultations, stakeholders argued that percentage-based value addition requirements were no longer consistent with regional and international practices and proposed replacing them with fixed dollar amounts per gram.
The Minister for Industries and Production, however, supported retaining the percentage-based mechanism, reflecting differences among stakeholders over the appropriate regulatory approach.
The National Assembly Standing Committee on Commerce, in its meeting held on September 3, 2026, recommended that the Ministry of Commerce forward the agreed proposals concerning SRO 760(I)/2013 to the Cabinet for approval while resolving the remaining outstanding issues.
The Ministry of Commerce has now placed the revised value addition rates before the ECC for consideration, seeking approval to incorporate the proposed norms into SRO 760(I)/2013.
Copyright Business Recorder, 2026
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