ISLAMABAD: The federal government on Monday imposed a ban of 30 days on the import of gold in order to check smuggling and speculation in currency, with immediate effect.

Chairing the meeting of Economic Coordination Committee (ECC) of the cabinet Finance Minister Ishaq Dar said that credible reports had indicated that there had been a surge in gold smuggling activity in a neighbouring country in the wake of steep rise in duty on import of gold.

As per the ECC decision, the temporary ban on import of gold will be both under SRO-760 and its commercial imports under Import Policy Order 2013.

The ECC decision will help curb smuggling without affecting the legitimate demand and supply position of the yellow metal. Gold exports, however, will continue without any restriction, said a finance ministry statement.

The issue of gold smuggling and consequent pressure on open foreign exchange market were agitated by the foreign exchange companies in recent meetings with the finance minister in Karachi and a follow-up meeting in Islamabad on Saturday.

Federal Ministers Sikandar Hayat Khan Bosan, Ghulam Murtaza Jatoi and Shahid Khaqan Abbasi, Khurram Dastgir Khan; Minister of State Anusha Rehman, Chairman Privatisation Commission Mohammad Zubair and Chairman Board of Investment Muftah Ismail and other officials attended the meeting.