Pakistan’s gold market has introduced a new pricing formula that aligns with international standards and aims to curb speculative practices. Under the new formula, gold prices in the country will be based on interbank trading and will be slightly higher, by around $5, with a certain percentage per tola compared to international prices. These rates will then be converted into Dirham and finally into the local currency.
The All Pakistan Gems and Jewellers Association President, Haji Haroon Rasheed Chand, believes that this new pricing formula will bring uniformity to gold prices in the country. It is also expected to help eliminate speculative pricing practices that have previously prevailed in the domestic gold market.
Speculators and black market operators have been known to sell gold at inflated prices, creating price disparities. The shift to this new pricing formula is aimed at addressing this issue, but the effectiveness of enforcing these pricing changes will be crucial.
Notably, there was a gap of nearly a month in the issuance of gold prices by the All-Pakistan Gems and Jewellers Association (APGJA). They had stopped providing price rates after law enforcement agencies cracked down on smuggling and tax evasion in September, leading to a period of price uncertainty.