Pakistanis Buy Up to 90,000 Kgs of Gold Every Year

Pakistan’s annual gold demand stands between 60 and 90 tons worth $8-12 billion, yet more than 90 percent of the trade remains undocumented. The Competition Commission of Pakistan (CCP) said in its Competition Assessment Study of Pakistan’s Gold Market released on Wednesday that 70 percent of domestic demand is linked to weddings and festivities, while Pakistan relies heavily on imports, bringing in $17 million worth of gold in FY24. The country’s official reserves are recorded at 64.76 tons worth almost $9 billion by late 2025. CCP noted that the Reko Diq mine could generate $74 billion in revenue over 37 years and an output of 17.9 million ounces of gold worth $54 billion at current prices. However, without urgent reforms in refining, hallmarking, and regulation, this output risks flowing into the same informal system. CCP said Pakistan’s gold market suffers from fragmented oversight involving multiple institutions, weak hallmarking enforcement, and high compliance costs, which promote smuggling and informal trade. It added that the suspension of SRO 760 has further disrupted regulatory stability and contributed to a halt in gem and jewellery exports. Gold trading is concentrated in major cities like Karachi and Lahore, while daily pricing remains association-driven due to the absence of transparent market mechanisms. CCP recommended creating a unified regulatory authority, enforcing mandatory hallmarking, introducing digital traceability tools such as blockchain, and establishing a gold banking system to formalise household gold. It also called for improved taxation, labour policies, and data governance to align the sector with international standards.