The gold trade in Pakistan has ground to a halt, causing significant alarm within the nation's bullion markets.Since September 13, 2023, this suspension has left both traders and buyers in a state of uncertainty.
Law enforcement agencies ordered the cessation of gold trade to combat widespread misconduct in the bullion market, including price manipulation, smuggling, and hoarding by various criminal syndicates and profiteers.
The smuggling of gold led to alarming price increases. In early September, the cost of gold bars surged to an astonishing Rs. 240,000 per tola, mainly due to manipulation by investors and speculators. Additionally, gold was being illicitly transported to neighboring countries, further inflating its prices and causing concern.
As a consequence, local jewelry sales have experienced a sharp decline.