The gold market in Pakistan finds itself in a state of uncertainty, markedby a prolonged suspension of bullion rates that has persisted for fourconsecutive weeks. This suspension emerged amidst a backdrop of discordwithin the jewelry industry regarding the establishment of a committeetasked with regulating this sector.
The genesis of this hiatus in official gold prices can be traced back to agovernment crackdown on speculators and traders. These individuals wereaccused of manipulating the market, causing a sudden and significant surgein gold rates during the previous month.
On September 12, gold prices within the local market experienced astaggering increase of Rs5,600 per tola, equivalent to 11.66 grams,reaching Rs215,000 rupees, despite a contrasting decline in theinternational gold market.
In response to these market disturbances, law enforcement agenciesinitiated a targeted operation aimed at speculators and traders involved inpotentially manipulative activities.
This crackdown consequently led to the suspension of official bullionrates. Since then, gold has been trading unofficially at fluctuating rates,with prices hovering around Rs190,000 rupees per tola, aided by theappreciation of the local currency, as reported by traders.
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To address the complex issue at hand, the Ministry of Commerce embarked ona path to resolve the matter by forming a committee. This committee wasenvisioned to comprise representatives from diverse stakeholders,encompassing jewellers, traders, exporters, and importers.
However, the committee’s formation has been beset by discord and disputesamong jewellers, particularly concerning the committee’s composition andthe scope of its mandate.