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Pakistan’s gold consumption has reached up to 90,000 kilograms annually, with demand valued between $8 billion and $12 billion, according to the Competition Commission of Pakistan (CCP). Despite this massive volume, more than 90 percent of the country’s gold trade continues to operate outside the formal system.
In its new Competition Assessment Study released on Wednesday, the CCP revealed that around 70 percent of gold purchases in Pakistan are tied to weddings and cultural events. Pakistan heavily depends on imports, bringing in $17 million worth of gold in FY24, while official gold reserves stand at 64.76 tons valued at nearly $9 billion.
The CCP highlighted that the upcoming Reko Diq project could transform the sector, estimating $74 billion in revenue over 37 years and nearly 18 million ounces of gold. However, it warned that without reforms in refining, hallmarking and regulation, this output may also enter the undocumented market. A senior CCP official noted that
“weak oversight and inconsistent policies continue to encourage informal trade and smuggling.”
The study pointed out that Pakistan’s gold market suffers from multiple regulatory gaps, fragmented oversight, and high compliance costs. The suspension of SRO 760 has already created instability, leading to a freeze in gem and jewelry exports. The market remains concentrated in Karachi and Lahore, where daily gold rates are still set by trader associations due to the absence of transparent pricing systems.
The CCP recommended establishing a single gold regulatory authority, enforcing mandatory hallmarking, introducing digital traceability tools such as blockchain and developing a gold banking framework to document household gold. It stressed that improved taxation and data governance are essential to align the sector with global standards and curb undocumented trading.
