Gold
The federal government has temporarily suspended the import and export of gold, silver, platinum, jewellery, gemstones, and other precious metals under the Import and Export of Precious Metals, Jewellery, and Gemstones Order 2013, known as SRO 760(I)/2013. This suspension, which is set to last for a period of 60 days, was announced through a notification issued on Wednesday.
The decision to halt the enforcement of SRO 760(I)/2013 takes immediate effect and impacts all entities involved in the trade of precious metals and jewellery. The government’s move is aimed at regulating the import and export flow of these high-value commodities during a period of economic stability concerns.
The notification reads, “The federal government hereby suspends the import and export of precious metals, jewellery, and gemstones order, 2013, for a period of 60 days.”
The original SRO 760(I)/2013 was introduced to streamline and regulate the processes governing the trade of precious metals and related items. It provided clear guidelines for entities involved in the import and export of metals such as gold, silver, and platinum, as well as precious jewellery and gemstones.
It also required jewellery exporters to register with the Trade Development Authority of Pakistan (TDAP), with the authority tasked with outlining the specific registration procedures for these businesses.
The order had established two separate schemes for the import of precious metals:
- Entrustment Scheme:
This allowed for the import of precious metals based on partial advance payments from foreign buyers, but the imported metals were strictly for the production of jewellery intended for export. Under this scheme, the quantity of metals imported, the jewellery produced, and the allowable wastage were carefully regulated to ensure transparency and compliance. - Self-Consignment Scheme:
This scheme permitted exporters to independently import precious metals to manufacture jewellery for export purposes. However, it limited the amount of precious metals that could be imported at a time, allowing a maximum of 25 kilograms on a “revolving basis.” This meant that once a consignment was used up, new imports could be made, but the metals could not be sold in the local market or used for any purpose other than manufacturing jewellery for export.
With the temporary suspension of these trade activities, the government has placed a temporary freeze on the processes that would typically govern the importation of precious metals. Local markets will no longer see these metals enter the country for local sale or use.
This measure is part of the government’s efforts to stabilize the local economy and regulate the flow of high-value goods in and out of the country. The temporary halt is expected to have a notable impact on the jewellery industry, which relies heavily on the import of precious metals for production.
