The gold market in Pakistan has switched to a new pricing formula to align it with international standards and put an end to speculative practices.
According to a report in a National Daily, the new pricing formula for gold is based on interbank trading. Under the formula, the price of gold in the country will be higher by around $5 with a certain percentage per tola compared to the price of gold in the international market. The rates will be further converted into Dirham and then into local currency.
In a statement, All Pakistan Gems and Jewellers Association President Haji Haroon Rasheed Chand said that the new pricing formula will bring uniformity in prices. He added that the formulae will also put an end to speculative pricing that dominated the domestic gold market in the past.
According to Chand, speculators and black marketeers were selling gold at exorbitant prices which created a disparity in prices but a shift to the new pricing formula will address the issue. However, he emphasized that pricing changes should be effectively enforced.
It is pertinent to mention here that after a gap of almost a month, the All-Pakistan Gems and Jewellers Association (APGJA) finally issued the prices of gold on Tuesday. Before Tuesday, the association had last issued the prices on September 12. Gold traders had stopped issuing rates after law enforcement agencies launched a crackdown against smuggling and tax evasion back in September.
Source: Pro Pakistani