Pakistan’s annual gold demand stands between 60 and 90 tonnes worth $8–12 billion, but more than 90 percent of the trade remains undocumented, it has emerged.
According to the Competition Assessment Study of the country’s gold market, which was released by the Competition Commission of Pakistan (CCP), nearly 70 percent of domestic demand is driven by weddings and festivities. However, despite the appetite, Pakistan imported $17 million worth of gold in FY24 while official reserves stood at 64.76 tons valued at almost $9 billion by late 2025.
The CCP highlighted the potential of the Reko Diq mine, which could generate $74 billion in revenue over 37 years, producing 17.9 million ounces of gold worth $54 billion at current prices. However, without urgent reforms in refining, hallmarking, and regulation, this output risks being absorbed into the same informal system that dominates the market today.
The report pointed to fragmented oversight, weak hallmarking enforcement, and high compliance costs as key factors fueling smuggling and undocumented trade. The suspension of SRO 760 has further disrupted regulatory stability, halting gem and jewellery exports.
Gold trading remains concentrated in Karachi and Lahore, with daily pricing largely determined by associations rather than transparent market mechanisms.
To address these challenges, the CCP recommended establishing a unified regulatory authority, enforcing mandatory hallmarking, introducing digital traceability tools such as blockchain, and creating a gold banking system to formalise household gold. It also called for improved taxation, labour policies, and data governance to align the sector with international standards.