The Competition Commission of Pakistan (CCP) has warned that the country’s gold market remains largely unregulated and dominated by associations of traders. Many gold traders operate without registration, and most transactions are conducted in cash to evade taxes.
According to the CCP, these trader groups influence gold prices and supply in various cities. The lack of proper testing facilities has led to issues like adulteration and consumer deception, making the gold market risky for buyers. Gold refining in Pakistan is minimal, and there is no reliable data on gold imports, sales, or purification processes.
The report highlights that most gold prices are set daily by local associations. There is no comprehensive framework to regulate the gold market or ensure fair pricing. The CCP also noted that Pakistan’s complex tax system on gold encourages smuggling, under-invoicing, and unrecorded transactions, further complicating oversight.
Officials emphasize that the lack of data prevents effective policymaking. Without accurate records of gold imports and transactions, authorities cannot monitor the market or implement reforms efficiently. This has created a fragmented system where trader associations hold substantial influence over pricing and availability.
To address these challenges, the CCP has recommended comprehensive reforms. Proposed measures include better registration systems, transparent pricing mechanisms, improved testing facilities, and stricter monitoring of gold transactions. The aim is to reduce tax evasion, protect consumers, and promote a more organized and accountable gold market.
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Experts say these reforms could strengthen trust in Pakistan’s gold sector, curb illegal practices, and boost growth in the legal gold trade. The CCP report underscores the urgent need for regulation to protect both consumers and the economy.
