KARACHI: The gold price on the local bullion market on Friday soared to a fresh historical peak of Rs29,014 per 10 grams, from Rs28,714 on Thursday, due to surging international prices of the yellow metal.

The one tola rate (11.664 grams) touched an all-time high of Rs33,850 from Rs33,500.

The gold price on the London Bullion Market surged to $1,061 per ounce.

A gold dealer said that the falling rupee value against the dollar had further made gold imports a costlier business.

The rupee currently stood at Rs83.55 to a dollar as against Rs83 last month.

He said it was surprising that the dollar was falling against major currencies particularly the euro and yen, but the greenback was gaining strength against the rupee.

The rising trend in gold prices has made it impossible for many families to procure jewellery sets for their daughter in the ongoing peak marriage season.

A dealer said that some families were bringing their old jewellery sets for renovation or curtailed their requirements.

Meanwhile, jewellery exporters had been facing delays for the last 10-15 days in clearance of gold consignments, imported against export, at the Karachi airport.

Previously, the gold clearance procedure took maximum two days, but now it was taking 12-15 days.

Chairman All Pakistan Gem Merchants and Jewellers Association (APGMJA) Saeed Mazhar Ali said the Deputy Collector, who has taken over the charge recently, was bent upon examining gold arrivals personally, which is causing inordinate delay in its clearance. On many a times, the deputy collector remained unavailable for examination.

The Trade Development Authority of Pakistan (TDAP) has convened a meeting on Saturday in which officials of the Civil Aviation Authority (CAA), Federal Board of Revenue (FBR), Airport Security Force (ASF) to discuss the problems being faced by the jewellery exporters,’ Mazhar added.

He said that legal and duty-paid gold imports had already been suspended for the last two years after increase in withholding tax to two from one per cent besides 50 cents per tola
duty.

Official taxes come to Rs600 per tola as compared to Rs150 per tola two years back. As a result, gold smuggling is thriving.

According to FBS statistics, gold imports in July-September 2009 surged to 316 kg ($9.6 million) as compared to 256 kg ($7.8 million) in the same period of 2008.

Similarly, exports of jewellery during the first quarter stood at $230 million as compared to just $60 million in the corresponding period of 2008.