Karachi, Pakistan’s gold market has recently undergone a significanttransformation by adopting a new pricing formula designed to align withinternational standards and eliminate speculative pricing practices.According to a national daily report, this innovative pricing structure isnow based on interbank trading.
Under the new formula, the gold price in Pakistan will be adjusted upwardsby approximately $5 per tola relative to the international market goldprice, along with a specific percentage increase. These rates will then beconverted into Dirham and subsequently translated into the local currency.
Haji Haroon Rasheed Chand, President of the All Pakistan Gems and JewellersAssociation, has expressed his support for the new pricing formula.
He believes that this reform will bring about price consistency,effectively reducing the speculative pricing that previously influenced thedomestic gold market.
Chand also highlighted the disruptive impact of speculators and blackmarket activities, which had led to the sale of gold at inflated prices,causing significant price disparities. However, the transition to the newpricing model is expected to address these issues, and Chand emphasized theimportance of rigorous enforcement of these pricing adjustments.
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It’s worth noting that the All-Pakistan Gems and Jewellers Association(APGJA) recently resumed publishing gold prices after a hiatus of almost amonth.
This interruption in price updates was a result of law enforcement agenciescracking down on smuggling and tax evasion activities in September, withthe last published prices dating back to September 12.