MoC seeks NA panel’s coordination with PD
MUSHTAQ GHUMMAN
ISLAMABAD: The Ministry of Commerce has sought the support of the National Assembly Standing Committee on Commerce to coordinate with the Petroleum Division for the establishment of a Gems Authority aimed at effectively addressing supply-side challenges and development needs of Pakistan’s gems sector.
The proposal was submitted by the Commerce Ministry days after the Competition Commission of Pakistan (CCP) recommended the creation of an autonomous Pakistan Gold and Gemstone Authority to regulate the country’s gold market. The CCP cited massive undocumented activity in the sector and the absence of a unified oversight framework.
According to the Ministry of Commerce, the Trade Development Authority of Pakistan (TDAP), which operates under its administrative control, is mandated under the TDAP Act 2013 to carry out functions related to market development, trade facilitation, product development, awareness and capacity building, coordination with trade missions, and consultation with trade bodies. In line with this mandate, TDAP is actively implementing marketing strategies to enhance Pakistan’s export potential, including in the gems and jewellery sector.
However, the Ministry noted that under the Rules of Business, 1973, supply-side issues of the mineral sector—such as exploration, extraction, and processing of gemstones—fall within the administrative domain of the Petroleum Division.
The Commerce Ministry therefore requested the National Assembly Standing Committee on Commerce to direct the Petroleum Division to formulate and finalize a comprehensive plan for establishing a Gems Authority capable of addressing supply-side challenges and meeting the development needs of the sector. It added that the Ministry would continue to provide full support from a trade development and export promotion perspective once the institutional framework is finalized.
According to a CCP study, Pakistan consumes between 60 and 90 tonnes of gold annually, making it one of the largest gold markets in South Asia. Despite this, more than 90 percent of gold trading occurs outside formal channels, relying heavily on cash-based transactions and undocumented supply chains.
The report revealed that Pakistan imported gold worth USD 31 million in 2023, while official gold reserves stood at 64.75 tonnes in early 2025. It further noted that the market is poised for significant change with the operationalization of the Reko Diq copper-gold project, which is expected to generate up to USD 74 billion over its 37-year lifespan. However, the study warned that without structural reforms, Pakistan would be unable to integrate domestically mined gold into the formal economy.
The CCP identified several factors distorting competition in the gold market, including non-transparent price-setting mechanisms, limited refining capacity, and a fragmented regulatory landscape. Daily gold prices, it said, are largely determined by local associations rather than transparent market forces, creating opportunities for manipulation and artificial premiums.
The study recommended a comprehensive reform package, beginning with the establishment of a single regulatory authority to harmonize licensing, compliance, hallmarking, and import rules. It also called for mandatory assaying and hallmarking nationwide to curb adulteration and restore consumer confidence. Meanwhile, the Ministry of Industries and Production has decided to establish a new statutory authority to act as the custodian of policy, facilitate businesses, and ensure effective inter-agency coordination ahead of finalizing a new National Gemstones Policy.
