KARACHI: Senior security officials on Monday held a meeting with bullion traders to address concerns over gold price speculation, rising rates, and suspected smuggling — days after a crackdown on black market currency dealers and a separate meeting with exchange companies.

According to All Sarafa Gems and Jewellers Association President Qasim Shikarpuri, the meeting was held in Islamabad, where security officials expressed concern over opaque pricing mechanisms and speculation in the gold market. They also raised questions about unusually high gold prices, urging traders to take corrective measures.

This comes in the backdrop of a recent operation by the Federal Investigation Agency (FIA), which last mon­th arrested five employees of a gold trader in Karachi, recovering Rs 12 million and 11 gold biscuits, each weighing 10 tola. The business owners, however, fled.

A similar situation unfolded about two years ago, when law enforcement agencies arrested five jewellers over alleged malpractice, hoarding, and undocumented trading. They were later released following assurances by the trade bodies to ensure transparency and documentation.

Security agencies ask jewellers to curb speculation, resume formal trading

Shikarpuri said security officials expressed concern over social media platforms, particularly WhatsApp groups, being used to influence gold prices. “We were directed to discourage such activities and instead form a 15-member national committee of traders to monitor and communicate daily rate movements transparently,” he said.

He informed officials that the Karachi Bullion Excha­nge, located at Zaibunnisa Street, has been closed since Sept 3, 2024, in an attempt to curb speculative trading and hawala-hundi transactions. However, the officials urged the resumption of formal trading activities, including the daily gold rate announcement by 2pm.

Shikarpuri said he assured the authorities that trading would resume after consulting with the members. He also clarified that the association continues to issue daily gold rates based on the interbank rupee-dollar parity, despite the exchange’s closure and the halt of official gold imports for over a decade. However, due to the absence of official imports, consumers often end up paying a premium in the open market.

Traders also raised concerns over two SROs: the suspension of SRO 760(I)/2024, which relates to the import and export of precious metals and gemstones, and SRO 924(I)/2020, issued by the Federal Board of Revenue (FBR) to regulate jewellers under anti-money laundering laws. Shikarpuri urged that SRO 924 be abolished, citing ongoing difficulties for the sector. In 2021, online inspections of jewellers and real estate agents commenced under the Anti-Money Laundering Act 2010, as part of efforts to monitor Designated Non-Financial Businesses and Professions.

Published in Dawn, July 29th, 2025