CCP Advises Gold Market Regulation Before Reko Diq Project

ISLAMABAD: The Competition Commission of Pakistan (CCP) has advised the government to implement stricter regulations in the gold market ahead of the commencement of the Reko Diq mining project, citing concerns over price stability, transparency, and fair competition.

The CCP emphasized that unregulated trading in gold and related precious metals could undermine economic benefits expected from Pakistan’s largest copper-gold project.

CCP Recommendations for the Gold Market

The CCP suggested several measures to strengthen market integrity:

• Enforce price monitoring mechanisms for gold and related commodities

• Improve transparency in imports, exports, and domestic trading

• Prevent monopolistic practices and market manipulation

• Coordinate with financial and regulatory bodies to track gold supply chains

A senior CCP official told Faiz.tv:

“Before Reko Diq becomes fully operational, the gold and precious metals markets must be properly regulated to ensure that the economic benefits reach all stakeholders fairly.”

Significance of the Reko Diq Project

The Reko Diq project in Balochistan is set to be one of the world’s largest copper and gold mines, attracting billions in investment and boosting Pakistan’s mining sector. Experts note that proper regulation in gold trading can:

• Stabilize domestic gold prices

• Encourage foreign investment in mining

• Prevent speculative trading ahead of production

• Support long-term economic growth and revenue generation

Market Experts Weigh In

Economists and market analysts agree that CCP’s intervention is timely, warning that unchecked market speculation could negate some of the anticipated gains from Reko Diq.

“If the government ensures transparent trading rules, Reko Diq’s gold output could have a positive effect on Pakistan’s reserves and the jewelry industry,” said an Islamabad-based economist.

Conclusion

The CCP’s advice to regulate the gold market before the Reko Diq project underscores the importance of balancing economic growth, market stability, and fair trade practices. Effective implementation could safeguard investor confidence and maximize benefits from one of Pakistan’s largest mining ventures.

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