ISLAMABAD: The Competition Commission of Pakistan-CCP report on Gold has revealed that Pakistan could unlock a potential $74 billion economic opportunity through the Reko Diq copper-gold project, marking a major point of discussion in the country’s evolving gold and minerals landscape.
The assessment, prepared by the CCP’s Center of Excellence in Competition Law (CECL), paints a clear picture of a market long shaped by informality, weak oversight, and a pricing system that leaves both regulators and consumers in the dark.
According to the CCP report on gold , Pakistan consumes 60 to 90 tonnes of gold each year, with cultural demand remaining the biggest driver. But more than 90 percent of gold trading takes place outside the formal economy, and the country relies almost entirely on imports. In FY 2023-24, Pakistan imported nearly $17 million worth of gold.
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The report also highlights how upcoming projects could reshape the sector. The Reko Diq copper-gold project, for instance, is expected to generate up to $74 billion over its 37-year lifespan — a development that could significantly alter Pakistan’s gold supply chain once operational.
But the study identifies several challenges that continue to hold the market back. These include:
- Informal dominance: weak documentation and cash-based trades allow large informal networks to set prices and influence supply.
- Opaque rate-setting: daily gold prices are largely determined by trade associations, not transparent market signals.
- Fragmented regulation: multiple agencies — including the Ministry of Commerce, FBR, SBP, PGJDC and TDAP — have overlapping roles, causing inconsistent policies and weak enforcement.
- High taxes and complex procedures: encouraging smuggling, under-invoicing and avoidance of formal channels.
- Poor refining and hallmarking capacity: limited testing facilities lead to widespread purity concerns and poor consumer protection.
- Lack of reliable data: no central record of imports, sales, purity checks or trader registrations.
To fix these systemic problems, the CCP has proposed a sweeping reform plan. Central to its recommendations is the creation of a Pakistan Gold and Gemstone Authority, a unified regulator that would streamline rules, licensing, imports, and AML/CFT compliance.
The commission also suggests nationwide mandatory hallmarking, improved refining and assaying, and the rollout of digital tools such as blockchain-based traceability linked with FBR’s Track and Trace System.
Another major proposal is the introduction of a Gold Banking System, modeled on Türkiye’s framework, which would allow households to convert stored gold into formal financial instruments, improving documentation and boosting the sector’s liquidity.
The CCP believes these changes could transform the market by increasing transparency, reducing illicit trade, protecting consumers and unlocking significant economic value — especially as Pakistan moves closer to commercial production at Reko Diq.
