The Competition Commission of Pakistan (CCP) has proposed the establishment of a 'Gold Bank' and 'Pakistan Gold and Gemstone Authority' as part of an ongoing assessment study aimed at reforming the country’s largely undocumented and unregulated gold market, 24NewsHD reported on Wednesday.
According to the TV channel report, the proposed authority would oversee gold licensing, imports, documentation, market regulation and the enforcement of anti–money laundering rules.
The Commission has recommended mandatory gold quality testing and grading, linking gold transactions to the Federal Board of Revenue’s track-and-trace system, and creating a gold-banking framework modelled on Turkiye’s system.
The CCP report said these reforms are essential to bring transparency to a market where pricing remains opaque, and most trade is carried out informally despite an annual gold consumption estimated at 60 to 90 tonnes.
CCP data shows that more than 90 percent of gold trading in Pakistan takes place through informal channels, while gold imports in fiscal year 2024 amounted to only $17 million.
The Commission stressed that the absence of a documented supply chain, a market-based pricing mechanism and comprehensive regulations has resulted in widespread cash transactions, cartel-like influence by trader groups, smuggling and chronic under-invoicing.
The report also highlighted structural weaknesses in refining and hallmarking, noting that gold refining in Pakistan is “almost non-existent” and inadequate hallmarking facilities have contributed to adulteration and consumer fraud.
The Commission further observed that the lack of reliable data on imports, sales and purity limits the government’s ability to design effective policies.
The CCP noted the strategic significance of the Reko Diq gold project, which is expected to produce an estimated $74 billion worth of gold over 37 years and could transform the country’s supply chain.
It is also recommended that proper gold-market regulations be implemented before the project becomes commercially operational.
The Commission concluded that only a specialised authority with comprehensive regulatory powers can ensure transparency, consumer protection and market stability in Pakistan’s gold sector.
Reporter: Waqas Azeem