The Competition Commission of Pakistan (CCP) has released a comprehensive competitive assessment study on the country’s gold market.
The report recommends establishing the Pakistan Gold and Gemstone Authority to formalise the gold market, introduce licensing for gold trading, regulate imports, enforce anti–money laundering rules, and link gold transactions to the FBR’s track-and-trace system.
The report states that regulatory measures must be introduced before the commercial launch of the Reko Diq project.
The CCP study highlights that Pakistan’s gold market currently operates without effective regulation or oversight, leading to widespread price opacity and structural issues. The report notes that Pakistan consumes 60 to 90 tonnes of gold annually—largely driven by social and cultural factors—while more than 90% of the trade takes place through informal channels.
The report further states that Pakistan is almost entirely dependent on imported gold, with imports valued at 17 million dollars in 2024. It identifies the Reko Diq copper-gold project as vital, with the potential to produce an estimated 74 billion dollars’ worth of gold and copper over its 37-year lifecycle, potentially transforming the national supply chain.
According to the assessment, the undocumented nature of the market encourages cash-based transactions and allows trader groups to influence prices and supply.
There is no unified market mechanism for determining gold rates, and various city associations issue their own daily price updates. Additionally, regulatory oversight is fragmented across multiple bodies, including the Ministry of Commerce, FBR, State Bank, Pakistan Jewellery and Gem Development Company, and the Trade Development Authority, creating policy inconsistencies.
The report warns that Pakistan’s complex tax structure, non-transparent processes, and lack of uniformity have fuelled gold smuggling and under-invoicing. Gold refining capacity remains negligible, while weak hallmarking facilities contribute to adulteration and consumer fraud. The absence of credible data on imports, sales, and purity hampers effective policymaking.
To address these challenges, the CCP has proposed wide-ranging reforms. It recommends creating a centralised Pakistan Gold and Gemstone Authority to oversee licensing, imports, AML compliance, and the implementation of a unified regulatory framework. It also calls for mandatory hallmarking and grading of all gold sold in the country to protect consumers and boost exports.
The report suggests digitising the entire gold value chain, using blockchain-based traceability mechanisms, and integrating the system with the FBR’s track-and-trace network. Drawing inspiration from Turkey, the CCP advises establishing a gold bank to bring household gold into the formal economy.
It also proposes comprehensive reporting on gold imports, production, and exports, along with strong price-monitoring mechanisms.
The CCP stresses that as Pakistan prepares for the commercial rollout of the Reko Diq project, introducing modern regulations for the gold market has become essential. It adds that formalising the market will enhance transparency, protect consumers, curb smuggling, reduce informal trade, and add significant value to the national economy.
