KARACHI: Pakistan’s gold and jewellery export sector is facing a severe crisis following the abrupt suspension of SRO 760 on May 6, which halted imports of raw gold and stalled export consignments.

According to Pakistan Bureau of Statistics (PBS) data, no gold was imported in June or July. Only nine kilograms of gold worth $927,000 were imported in May — primarily shipments made before the SRO’s suspension.

In contrast, gold imports in July 2024 had stood at $2.2 million.

Jewellery exports have also plunged. PBS data shows exports totalled just $17,000 in July 2025, $27,000 in June, and $617,000 in May — down sharply from $2.6m in July 2024.

FPCCI warns of reputational damage, legal action from global buyers

Industry leaders say the situation has effectively paralysed the sector, with exporters unable to fulfill orders despite having received raw gold under legal contracts from international buyers.

Habib ur Rahman, the former chairman of the Pakistan Gems and Jewellery Traders and Exporters Association, cited an example involving a UAE-based company that had provided 860 grams of pure gold in March for manufacturing purposes. The order was to be delivered within 120 days, but 164 days had passed by August 19 without fulfilment.

The UAE firm has now demanded the return of its gold, warning that payment of $17,268 would only be released upon delivery of the jewellery. In a letter to Pakistan’s ambassador, the company expressed frustration over repeated halts in exports, comparing the situation unfavourably with its uninterrupted trade experience with Indian suppliers.

The disruption is causing international buyers to reconsider sourcing from Pakistan, leading to reduced orders and potential legal action, Mr Rahman warned.

In a letter to Prime Minister Shehbaz Sharif, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Atif Ikram Sheikh called for the immediate restoration of SRO 760 to protect the jewellery export industry.

He noted that many exporters had already received raw gold under legally binding contracts and had prepared jewellery for shipment when the notification was suspended without warning. This, he said, had disrupted supply chains and eroded global buyer confidence.

Mr Sheikh said a high-level government committee had reviewed past transactions under SRO 760 and found no misuse or irregularities. A clean report has been submitted, and the Ministry of Commerce has forwarded a summary recommending revival of the SRO, which is currently pending at the PM Office.

Patron-in-Chief of the United Business Group, S.M. Tanveer, warned that delays in reviving the SRO could trigger legal claims from buyers, result in market losses, and damage Pakistan’s reputation in the global gold trade. He urged the Prime Minister to authorise the SRO’s revival at least for pending export consignments.

“This is critical to restoring confidence, preserving Pakistan’s export markets, and protecting the country’s standing in international trade forums,” he said.

Published in Dawn, August 28th, 2025