ISLAMABAD: The Competition Commission of Pakistan (CCP) has released its maiden Competition Assessment Study of the country’s gold market, marking the first comprehensive, evidence-based examination of the sector’s structure, regulatory framework, and competitiveness challenges. The study was carried out by the CCP’s Centre of Excellence in Competition Law (CECL).
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According to the report, Pakistan’s gold market has long been characterised by informality, fragmented regulation and opaque pricing practices. These issues have enabled market distortions, weakened consumer protection mechanisms and hindered the sector’s potential contribution to the economy. The study notes that annual gold consumption in Pakistan ranges between 60 and 90 tonnes, largely driven by cultural and wedding-related demand.
The Competition Commission of Pakistan (CCP) has released an assessment study on the country’s gold market.
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However, over 90 per cent of gold trading takes place outside formal and documented channels, leaving wide gaps in regulation, taxation, and transparency. The CCP emphasised that with the upcoming commercial development of the Reko Diq project — expected to produce significant quantities of gold and copper — the need for a modern and well-regulated gold ecosystem has become even more critical.
To address these longstanding challenges, the report recommends a wide-ranging reform package. Key among these proposals is the creation of the Pakistan Gold & Gemstone Authority, a dedicated body that would unify rules and regulatory oversight. This authority would streamline licensing, standardise quality controls, regulate imports, and ensure compliance with Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) frameworks.
Pakistan’s gold demand stands at 60–90 tonnes a year (worth $8–12bn), yet over 90% of the trade remains informal, says the CCP. Weddings drive 70% of demand, while imports stay low and reserves hold near 65 tonnes.
With Reko Diq set to produce 17.9m oz of gold and generate up to… pic.twitter.com/4fJJE4KwT0
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The CCP has also proposed a digital transformation of the gold value chain. This includes integrating blockchain-based traceability systems with the Federal Board of Revenue’s (FBR) Track and Trace infrastructure to curb illicit trade, authenticate gold origins, and improve record-keeping across the market.
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The commission stated that such reforms would not only modernise the gold sector but also protect consumers, expand documented trade, and unlock significant economic value for Pakistan.