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KARACHI: The rising gold price in the domestic market has pushed up the demand for Indian artificial jewellery while each year around Rs10 billion worth of it is being smuggled into the country, Dawn has learnt.
The skyrocketing price of the precious metal is making an adverse effect on the local gold market and has pushed the 24 carats gold price to record high Rs54,650 per tola (11.664 grams) as compared to Rs48,700 July 1 rate.
In April, 10 grams of gold (24 carats) was sold at Rs39,287.
Because of increasing inflation, surging food prices and high cost of living, many people cannot afford to buy gold jewellery and relying on artificial jewellery. Even many well-off families are also seen purchasing brand new lightweight gold jewellery sets or artificial jewellery, local gold jewellers told Dawn.
They said that it had also been seen that on weddings occasion some people brought their old gold heavy jewelleries to gold shops for get them converted into lightweight jewellery sets.
Giving an example of the increasing demand of artificial jewellery, gold jewellers said that out of 100 brides around 90 brides definitely wore artificial jewelleries.
They said that artificial jewellery from Korea, Hong Kong, China and Bangkok were readily available in the local market, but Chinese and Indian jewellery excelled in quality in comparison of their rates.
One of the important factors pushing the artificial jewellery’s demand up is the deteriorating law and order situation and growing incidents of robberies in marriage halls and wedding parties despite the presence of a large number of guests.
Another factor contributing to the popularity of artificial jewellery among Pakistani women is the drams on Indian TV channels, some gold jewellers said.
In these Indian TV drams artistes wear latest designs of Indian-made jewelleries with matching saris and other glamorous outfits which hugely inspire Pakistani women, the jewellers said.
They said that some highly-impressed girls and women sought Indian jewelleries by name and insisted on some particular jewellery sets or deigns which they had seen on the Indian TV channels worn by some artiste and actress.
Keeping in view the over-zealous customers of Indian jewellery, shopkeepers also fully cash in the situation by charging higher rates.
However, a number of artificial jewellery sellers interviewed by Dawn on Jewellery Street off the Marriot Road tried to dispel the impression of gold dealers that the artificial jewellery business was booming.
They said that for the past few months the sale of artificial jewellery had been dwindling owing to tension and violence in the city.
They said that poor law and order situation compelling buyers to stay indoors and many upcountry buyers were also not coming.
They said many craftsmen in Karachi were making jewellery sets and other items in various parts of the city. These jewellery items were 90 per cent lesser in prices in comparison with the Indian-, Chinese-, Hong Kong-, Bangkok- or Korean-made jewellery, they added.
They said that the prices of locally-made jewellery had not been raised that sharply and even the rates of imported or smuggled jewellery were normal.
However, Artificial Jewellery Domestic Industries Association chairman Saleem Saba did not agree with their own market people’s opinion on low sale.
He said that artificial jewellery sale had definitely risen up as people found it difficult to afford gold jewellery these days.
He said more than 90 per cent of gold trade workers were now doing work for local artificial jewellery-making industries in various parts of the city.
Demand and sale of artificial jewellery could be gauged from fact that over 800 wholesale shops, 200 offices and 25 importers were doing business on the Marriott Road and in adjoining areas which were 50 per cent higher in number in comparison with figures of two years ago, he said.
In Karachi there were as many as 10,000 shops of artificial jewellery, he added.
“In the current circumstances nobody bothers to wear gold jewellery while in the past people felt uncomfortable wearing artificial jewellery,” he said.
Mr Saleem said that Indian artificial jewellery had been banned in Pakistan, but it found its way through smuggling via Dubai after their stickers had been removed.
“It is estimated that around Rs10 billion worth of Indian artificial jewellery is being smuggled into the country every year,” he said.
A 200-250 gram Indian set (earrings and necklace) cost Rs2,000-Rs3,000 in the wholesale market while one kg set cost Rs15,000-20,000, he said.
In contrast, Chinese set of one kilo was being sold at Rs6,000 in the wholesale market followed by Rs8,000 of Bangkok, Rs10,000 of Hong Kong and Rs15,000 of Korean set, he added.
Despite good designs of India jewellery, the Chinese jewellery had grabbed the market and Bangkok, Hong Kong and other countries jewellery was also popular.
He said that smuggling was affecting local jewellery manufacturing industries which largely situated in Landhi, Malir, Orangi Town, Korangi, Liaquatabad, Keamari, Manzoor Colony and Gharibabad areas.
He added that around 4,000 people were operating small and medium sized units in these areas, providing jobs to 50,000 people directly or indirectly.
Many people were importing Indian jewellery through legal channels and “khepias” were also importing Indian jewellery after paying import trade price (ITP) at the rate of $15 per kg.
“To boost the local industry and employment, the government should enhance the ITP to $100 per kg or impose a complete ban on import of artificial jewellery to boost the local industry,” he opined.
