Pakistan Lifts Suspension of Key Gold Trade Regulations, Averting Export crisis
Islamabad, Pakistan – December 12, 2023 – The ministry of Commerce has rescinded its recent suspension of Statutory Regulatory Order (SRO) 760, effectively lifting a ban on certain gold trade practices and averting a potential crisis for Pakistan’s jewelry export sector. The move comes after exporters reported being unable to fulfill international orders despite legally acquiring raw gold.
The suspension had created meaningful disruption, with exporters holding legally obtained raw gold unable to proceed with production and shipment. Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Atif Ikram Sheikh had urgently appealed to Prime Minister Shehbaz Sharif for the immediate restoration of SRO 760 to safeguard the industry.
The Ministry also announced several amendments to SRO760, originally titled ‘Import and Export of Precious Metals, Jewellery and Gemstones Order 2013′, renaming it to ‘Import and Export of Precious Metals and Jewellery Order 2013’. Changes include expanding the definition of a “jewellery passbook” – issued by the Trade Progress Authority of Pakistan (TDAP) – to encompass both paper and digital versions (Clause 2(j)).
TDAP, which monitors gold imports and jewellery exports, records all transactions in these passbooks. The scope of trade permitted under Clause 3(2) was also clarified to specify the import of precious metals and gemstones alongside the export of jewellery.
Further amendments address operational issues at customs stations (Clause 3(9)), allowing for a one-time change of stations with a no-objection certificate from the relevant customs officials. Import procedures under the entrustment scheme (Clause 4(2)) now allow for contracts to be apostilled under the Apostille Convention of 1961, in addition to notarization and attestation by Pakistani missions abroad.
a new provision mandates that all transactions under the entrustment scheme be processed through the same bank handling both the import of precious metals and the export of jewellery (Clause 4(2)).
These changes follow the Economic Coordination Committee’s October approval to continue the existing framework for precious metal and jewellery trade, with a focus on enhanced clarity and automation measures to improve efficiency and traceability.
