KARACHI: After Peshawar and Lahore traders unilaterally issued higher rates in violation of the mutual understanding, the All Pakistan Gem and Jewellers Associ­ation (APGJA) has announced to stop the issuance of daily rates for one week.

The association on Wednesday increased the 10-gram and one-tola rates by Rs5,487 and Rs6,400 to Rs177,049 and Rs206,500, respectively, following a hike of $35 per ounce to $1,959 in the world market.

On the contrary, traders in Lahore and Peshawar had issued much higher one-tola rates in the range of Rs213,000-216,000 des­pite a mutual understanding with the countrywide traders for fixing the rate at Rs206,500 across the country based on the interbank dollar rate, claimed APGJA President Haji Haroon Rasheed Chand.

The association resumed issuing daily rates from Oct 10 after a gap of almost a month due to ongoing raids by law enforcement agencies on smugglers and speculators in the bullion market in which five traders were also picked up in September on alleged involvement in illegal trading.

The APGJA chief said he was shocked over the breach of trust by traders of Lahore and Peshawar. He said he may ask the law enforcement agencies to do what they can to avert disparity in bullion rates amid the rising dollar against the rupee in the last two days.

When the gold trade resumed on Oct 10, the association had announced 10-gram and one-tola rates at Rs171,039 and Rs199,500 based on the global rate of $1,856 per ounce against Rs184,585 and Rs215,000 issued on Sept 12 based on $1,911, showing a fall of Rs13,546 and Rs15,500, respectively.

Mr Chand had assured the law enforcement officials last month of promoting legal trade, encouraging documentation and computerisation of trade, bringing physical trading instead of speculative, weekly transactions and issuing daily market rate updates.

Published in Dawn, October 19th, 2023