Pakistan’s gold and jewellery sector reels from the suspension of SRO 760, halting raw gold imports and stalling export consignments amid calls for revival. The suspension is causing a gold crisis in Pakistan.
The Pakistani government suspended SRO 760 on Monday, May 6, 2025, in Islamabad, abruptly stopping imports of raw gold and delaying jewellery export consignments, as traders warn of severe economic fallout from disrupted supply chains.
Impact on Gold Exports and Imports
The suspension of SRO 760, which governed the import and export of precious metals, jewellery, and gemstones, has led to a near-total halt in raw gold imports. According to data from the Pakistan Bureau of Statistics (PBS), no gold was imported in June or July 2025, compared to 9 kilograms valued at $927,000 in May 2025—largely pre-suspension shipments—and $2.2 million in July 2024.
Jewellery exports have plummeted similarly. PBS figures show exports at $17,000 in July 2025, $27,000 in June 2025, and $617,000 in May 2025, a sharp decline from $2.6 million in July 2024. This downturn reflects stalled consignments and inability to fulfil international orders, threatening Pakistan’s position in global markets.
Traders highlight that the policy, initially suspended for 60 days to restructure the sector, has extended beyond that period, paralysing operations. Exporters report legal contracts with buyers in regions like the UAE being jeopardised, with potential claims for damages looming.
Traders Urge Revival Amid Gold Crisis
Industry representatives have intensified calls for the reinstatement of SRO 760. Habib ur Rahman, former chairman of the Pakistan Gems and Jewellery Traders and Exporters Association, cited a case where a UAE-based firm supplied 860 grams of pure gold in March 2025 for manufacturing, but delivery was delayed by 164 days as of August 19, 2025. The buyer demanded the gold’s return and withheld payment of $17,268, contrasting Pakistan unfavourably with Indian suppliers.
Atif Ikram Sheikh, president of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), wrote to Prime Minister Shehbaz Sharif, emphasising disrupted supply chains and eroding global trust. He noted that a high-level government committee reviewed transactions and found no misuse, with the Ministry of Commerce recommending revival—yet the summary remains pending at the Prime Minister’s Office.
S.M. Tanveer, patron-in-chief of the United Business Group, warned that further delays could trigger legal actions, market share losses, and reputational damage for gold in Pakistan. He urged authorisation for at least pending consignments to safeguard export markets.
Government Response and Ongoing Reviews
The Ministry of Commerce issued SRO 760(I)/2025 on May 6, 2025, suspending the 2013 order for 60 days to review and restructure regulations. Despite assurances from Commerce Minister Jam Kamal Khan in meetings with associations like the All Pakistan Small Gems Jewellers & Tools Association on August 8, 2025, that reinstatement was imminent, no action has been taken.
A Zoom meeting with gold exporters reinforced the urgency, but the approval remains stuck at the Prime Minister’s Office, delaying the resumption of gold export activities. The sector’s paralysis contrasts with pre-suspension vibrancy, where SRO 760 facilitated duty exemptions on raw materials for exports.
Background
SRO 760(I)/2013, introduced by the Ministry of Commerce, enabled duty-free imports of raw gold and gemstones for value-added exports, boosting the jewellery sector. Its abrupt suspension was aimed at preventing potential misuse, but a subsequent committee cleared the industry of irregularities. Before May 2025, the policy supported growth in gold exports, contributing to Pakistan’s trade portfolio amid economic challenges.
What’s Next
Stakeholders anticipate a decision soon, with the Ministry of Commerce pushing for revival to prevent further losses. As the gold crisis continues, restoring SRO 760 could stabilise gold exports and rebuild confidence in Pakistan’s jewellery trade.
Published in SouthAsianDesk, August 28th, 2025
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