Pakistan’s gold trade is under scrutiny as security agencies push for greater transparency to address speculation and unregulated trading practices. Recent enforcement actions highlight the urgency of these efforts. For instance, a crackdown by the Federal Investigation Agency in Karachi led to the arrest of five employees of a gold trader, with authorities seizing Rs 12 million and 11 gold biscuits. This follows a similar operation two years ago, where jewellers were detained for alleged hoarding and undocumented trading but were later released after trade bodies promised reforms.
Manipulative Practices of Gold Trade
To curb manipulative practices, agencies have directed jewellers to discourage speculative activities, particularly on social media platforms like WhatsApp, which have been used to influence gold prices. A proposed 15-member national committee of traders is set to monitor and communicate daily gold rate movements transparently, aiming to stabilize the market and restore trust. This initiative aligns with global efforts, such as those by the World Gold Council, which emphasize responsible sourcing and clear supply chain practices to enhance market confidence.
The push for transparency comes as Pakistan’s gold sector grapples with issues like smuggling and cash-based transactions, which obscure trade accountability. Establishing an end-to-end traceability system could ensure that gold’s origin, payment sources, and sales are fully documented, benefiting both regulators and consumers. Such measures are seen as vital to aligning Pakistan’s gold trade with international standards, fostering fair pricing, and reducing illicit activities.
Published in SouthAsianDesk, July 29th, 2025
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