In a significant move, the gold market in Pakistan has adopted a new pricing formula aimed at aligning it with international standards and curbing speculative pricing practices.
This initiative has been welcomed by industry experts who anticipate greater price uniformity.
The newly introduced pricing formula, as reported by a leading National Daily, is primarily based on interbank trading, a practice widely recognized for its transparency and reliability in the financial markets.
Under this formula, the price of gold in Pakistan will be set slightly higher, approximately $5 more per tola, compared to international gold prices. This local rate will then be converted into Dirham and subsequently into the local currency.
APGJA president optimistic
Haji Haroon Rasheed Chand, President of the All Pakistan Gems and Jewellers Association (APGJA), expressed his optimism regarding the new pricing formula. He stated that the formula would bring about a much-needed uniformity in gold prices across the country. Furthermore, Chand noted that the formula would effectively put an end to the speculative pricing practices that had previously dominated the domestic gold market.
Chand went on to explain that speculators and black marketeers had been selling gold at exorbitant prices, creating a significant disparity in gold prices within the country.
However, the shift to this new pricing formula is expected to address this issue and promote fair and standardized pricing. The association president emphasized the importance of enforcing these pricing changes to ensure their effectiveness.
It is worth mentioning that the All-Pakistan Gems and Jewellers Association (APGJA) resumed the issuance of gold prices on Tuesday after nearly a month-long hiatus. Prior to this, the association had last published gold prices on September 12. This halt in rate issuance was prompted by a crackdown launched by law enforcement agencies against smuggling and tax evasion in the gold market in September.
The introduction of this new pricing formula is expected to usher in a new era of transparency and reliability in the Pakistani gold market, ultimately benefitting consumers and promoting fair competition among gold traders.
