ISLAMABAD: Pakis­tan has enacted a 60-day ban on importing and exporting precious metals, jewellery, and gemstones to stabilise its foreign exchange reserves.

The temporary ban was imposed by a Commerce Ministry Order suspending SRO760 of 2013, which governs the trade of precious metals. The restriction is linked to the recent impasse with India as a potential strategy to limit the flow of metals.

Gold is still used as a traditional store of value and is an important part of Pakistan’s cultural, financial, and manufacturing sectors. Pakistan predominantly imports gold from the UAE, Switzerland and other gold-trading hubs.

An official source told Dawn that the decision was made to limit the flow of gold and other precious metals to India via Dubai. “There is a big difference in the price of gold, which is a primary reason that encourages its exports to India,” a government official stated.

Pakistan exported jewellery worth $10.94 million during the first nine months of the current fiscal year as against $6.93m over the corresponding months of last year, indicating a growth of 57.91pc.

Under the Export Facilitation Scheme, the government has provided numerous incentives to jewellery exporters, including duty drawbacks, zero-rating for specific inputs, and streamlined export documentation.

In 2023, Pakistan reduced several gold import regulations to promote transparency, minimize smuggling, and establish computerised customs valuation and tracking systems.

Published in Dawn, May 8th, 2025