On March 28, 2025, domestic gold prices in Pakistan soared to unprecedented levels, with 24-karat gold reaching Rs321,000 per tola (approximately 11.66 grams) and Rs275,205 per 10 grams. This marks an increase of Rs 3,200 and Rs 2,743, respectively, from the previous day.
The surge aligns with global trends, as international gold prices climbed by $31 to $3,052 per ounce. Factors contributing to this rise include the imposition of a 25% tariff on imported vehicles by the United States and escalating geopolitical tensions.
Local traders report a significant decline in sales due to the soaring prices, making gold unaffordable for many consumers. The All Pakistan Sarafa Gems and Jewellers Association, responsible for setting daily domestic rates, bases its pricing on interbank rates, which have remained relatively stable over the past year.
The current economic climate has led to reduced consumer spending on gold jewelry, particularly during the pre-Eid season, traditionally a peak period for such purchases. Many jewelers are struggling to maintain operations, with some facing challenges in covering expenses like electricity bills amid declining sales.
Additionally, the Federal Board of Revenue (FBR) has been sealing jewelry shops that are not integrated with the point-of-sale (POS) system, further exacerbating the difficulties faced by traders. The combination of high gold prices and regulatory actions has created a challenging environment for Pakistan’s gold market.
