The Competition Commission of Pakistan (CCP) on Wednesday released its maiden competition assessment study of the gold market in Pakistan, providing the first evidence-based analysis of the sector\u2019s structure, regulatory landscape, and competitiveness challenges.
\nThe study, conducted by CCP\u2019s Center of Excellence in Competition Law (CECL), maps a market historically dominated by informality, fragmented oversight, and pricing opacity, said a news release.
\nAccording to the report, Pakistan\u2019s annual gold consumption ranges between 60 to 90 tonnes, driven largely by cultural demand, while over 90% of gold trading occurs outside formal channels. The market relies almost entirely on imports, with US $17 million worth of gold imported in FY 2023-24.
\nThe study highlights the transformative potential of the Reko Diq copper-gold project, expected to generate up to US $74 billion over its 37-year of useful life and significantly reshape domestic supply chains.
\nThe report identifies deep-rooted barriers that suppress competition and distort market functioning includes:
\nInformal market dominance: weak documentation and cash-based transactions allow large informal networks to set prices and influence supply.<\/p>\n
Opaque price-setting: daily gold rates are largely influenced by associations rather than transparent market mechanisms.
\nFragmented regulation: overlapping and unclear mandates of Ministry of Commerce, Federal Board of Revenue (FBR), State Bank of Pakistan (SBP), Pakistan Gems and Jewelry Development Company (PGJDC) , and Trade Development Authority of Pakistan (TDAP) create policy inconsistencies and enforcement gaps.
\nHigh taxes and compliance costs: complex procedures, and inconsistent taxation encourage smuggling and under-invoicing.
\nLimited refining, assaying and hallmarking capacity: Pakistan has negligible refining capability and inadequate assaying and hallmarking facilities, leading to widespread purity issues and weak consumer protection.
\nData deficiencies: Absence of reliable import, traders registration, sales, and purity data prevents evidence-based policymaking.
\nTo address these challenges, CCP has proposed a comprehensive reform package including establishing a unified regulator the Pakistan Gold and Gemstone Authority to harmonize rules, licensing, imports, and Anti Money Laundering (AML) and Counter Financing Terrorism (CFT) compliance, and mandatory assaying and hallmarking nationwide to ensure purity, protect consumers, and enable exports.
\nCCP also proposed digital transformation of the gold value chain with blockchain-based traceability integrated with FBR\u2019s Track and Trace system, creation of a Gold Banking System, inspired by the T\u00fcrkiye Gold Banking System to mobilize household gold into the formal sector, and Strengthen data governance through centralized reporting, market documentation, and scientific price-monitoring mechanisms.
\nCCP emphasizes that modernizing the gold sector will boost transparency, safeguard consumers, reduce illicit trade, and unlock significant economic value, particularly as Pakistan prepares for the commercial rollout of Reko Diq.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Competition Commission of Pakistan (CCP) on Wednesday released its maiden competition assessment study of the gold market in Pakistan, providing the first evidence-based analysis of the sector\u2019s structure, regulatory landscape, and competitiveness challenges. The study, conducted by CCP\u2019s Center of Excellence in Competition Law (CECL), maps a market historically dominated by informality, fragmented oversight, […]<\/p>\n","protected":false},"author":2,"featured_media":499720,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-516799","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business"},"yoast_head":"\n