Pakistan Conditionally Allows Gold Import for Jewelry Sector
ISLAMABAD: Pakistan has conditionally allowed gold imports for the local jewelry sector, the Ministry of Commerce announced on Thursday. The decision comes as authorities seek to revive the struggling jewelry industry, stabilize prices, and meet growing domestic demand while managing foreign exchange reserves.
The conditional approval permits licensed jewelry manufacturers and exporters to import gold under strict guidelines, including quantitative limits and reporting requirements to the State Bank of Pakistan (SBP).
Why the Move Matters
The jewelry industry in Pakistan has faced severe challenges due to:
- Restricted gold imports over past months
- Rising global gold prices
- Supply shortages affecting production and exports
Industry stakeholders welcomed the decision, noting that it could boost local production, stabilize retail prices, and support employment in the sector.
Import Guidelines and Regulations
According to the Commerce Ministry:
- Only registered manufacturers and exporters are eligible
- Gold imports must comply with SBP regulations
- Imported gold should be primarily used for domestic jewelry manufacturing or export purposes
A spokesperson said:
“This step balances the need for gold in the jewelry sector while safeguarding the country’s foreign reserves. Licensed businesses can now operate without disruption.”
Impact on Local Jewelry Market
The conditional import approval is expected to:
- Lower prices for gold jewelry by ensuring steady supply
- Improve profitability for jewelers and artisans
- Encourage export-oriented production in line with government incentives
Economists say this is a measured approach, allowing the government to support domestic industry without significantly straining foreign exchange reserves.
Industry Response
The All Pakistan Jewellers Association (APJA) welcomed the move, stating:
“This conditional approval is a positive step for the industry. We urge authorities to ensure smooth operational procedures to help jewelers meet market demand.”
Jewelry exporters hope this decision will also help them compete in international markets by ensuring timely access to raw materials.
Conclusion
Pakistan’s conditional approval of gold imports for the jewelry sector is a strategic measure to support local businesses, stabilize the market, and strengthen exports. Authorities continue to monitor the situation to balance domestic demand with foreign reserve management.
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