PESHAWAR: The Peshawar High Court on Friday directed the federal government and several organisations to respond to a petition seeking formulation of rules for regulating the business of gold and gold jewellery.
A bench consisting of Justice Syed Arshad Ali and Justice Shahid Khan issued the order after preliminary hearing into the petition jointly filed by Saeedullah and 34 other residents, who sought orders for the government to have the uniform gold rate in the country.
The petitioners also requested the court to order the preparation of a manual for people’s knowledge of the standardised method of certification or laboratory testing at the government level to show the exact weight of gold, the fixing of labour and gold polish rate as well as the amount of “wastage” for both gold selling and buying in line with international laws.
They contended that regulating gold jewellery sales in Pakistan was of paramount importance to ensure transparency, consumer protection, and industry standards.
Petitioners want govt to prepare manual for standardised method of certification and laboratory testing of gold
The petitioners said the government should formulate robust regulations for gold hallmarking and pricing and consumer education.
The respondents in the petition are the federal government through law secretary, ministries of industries and production and commerce, the State Bank of Pakistan through its chief manager, Pakistan Gems and Jewellery Development Company, Pakistan Standards and Quality Control Authority through its deputy director for Peshawar Zone, Pakistan Gems and Jewellery Traders and Exporters Association, and All Pakistan Commercial Exporters Association.
Advocate Nazish Muzaffar appeared for the petitioners and contended that internationally the unit used for the business of gold was grams or milligrams, whereas in Pakistan, the units usually used were tola, masha and ratee.
She said it would be appropriate that the government for a uniform policy should only allow the international units to be used in the country for the business of gold as the increase or decrease in the value of gold depends on the international market.
The lawyer argued that hallmarking was a crucial aspect of gold jewellery regulation as it involved the certification of gold jewellery by an authorised centre indicating the purity of gold.
She said a Pakistani consumer was very often a victim of “irregular” gold quality.
“Hallmarking system would protect the people from fraud and assist exports of jewellery,” she said.
The counsel argued that the government should formulate strict standards and guidelines for hallmarking, ensuring that only genuine and accurately marked jewellery was sold in the market.
She said regular inspections and audits of hallmarking centers could guarantee the integrity of the process, like the international market of gold.
Ms Muzaffar contended that given the high demand and value associated with gold and gold jewellery, it became essential to establish comprehensive regulations for its sales.
The counsel said due to the developing interest of the public in gold, many private national and local associations were established by the gold merchants in the business.
She added that the purpose of all local and national gold associations was to develop and promote the growth and prosperity of all the members in the gems and jewellery industry across the country.
“Ironically, the lack of a check and balance system for gold jewellery business with the customers was neglected severally and the consumers were at the mercy of the jewellers and it became a mafia,” she said.
Ms Muzaffar claimed that many gold jewellers started arbitrary prices by adding extra cost to the gold jewellery while selling it in the name of polish, labour or even mentioning the wrong karat of gold to the customers.
She said most consumers didn’t know how to seek relief against unfair trade practices or exploitation.
Published in Dawn, July 15th, 2023